Zimbabwe has twin problems which are trade imbalances (trade deficits) and fiscal imbalances (budget deficits). Shortage of FOREX and cash are not the problem but simply symptoms of the underlying and unsustainable deficits and imbalances over decades. The fact that by our own admission we have broken our own laws through borrowing way beyond legally approved limits should be a wakeup call to us as a country in general and specifically to the Monetary and Fiscal Authorities. The insistence on an exchange rate of 1:1 and hence resistance to allow a market determined exchange rate between the RTGS rate and the USD has precipitated an effervescence in the economy which if not attended to will seriously dislocate the pillars on which our economy rests.
Click the link below to read the entire call for action.
CALL FOR ACTION – CEO AFRICA ROUNDTABLE….pdf
