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‘Interbank rate must stay for another year’

United Refineries’ Chief Executive Officer Busisa Moyo has urged the Ministry of Finance and Economic Development to maintain the current interbank rate for at least a year as a means of instilling people’s confidence in the local currency.

While making his interventions at the Midterm Budget Review Breakfast meeting at a local hotel, Friday, Moyo said the business sector is heavily affected by the financial instability.

Moyo said maintaining the current interbank rate would show the ability of the government to maintain stability of the local currency.

“There is still a challenge in confidence especially on the exchange rate. For now the current rate has been hovering between 9 and 12 for the past six weeks and that is the longest that has stayed. If this rate can be maintained for the next 12 months then surely the business sector can be assured of stability. The business sector needs something to measure the local currency against,” said Moyo.

Moyo reiterated on the need for the government to make market reforms that are favourable to economic growth. 

He said the introduction of the interbank market, which had been absent for a long time, is a welcome development which needs to be backed by a market-based economy. 

“Market based economy is the most sustainable, confidence inspiring economic construct which can be put into play. Instead of burdening the government with coming up with ideas for market development, we can let the market itself determine the best ideas to implement,” he said. 

Moyo noted that livestock are at risk especially in the southern region of the country because of drought.

He said a breed of about one million herd are at risk of dying and it is up to the government to make relief provisions until the next rainy season.

“Right now there is no capacity to import raw materials for stock feeds. There are reports of some maize stock which has been deemed unfit for human consumption. Is there no way that we can use this maize for livestock feed until we get to the rainy season when there will be grass cover,” he said. 

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