Finance and Economic Development Minister, Professor Mthuli Ncube says the government will not be dollarising the economy or instituting price controls as a way of dealing with challenges facing the economy.
In a response to a question raised by parliamentarians in the Budget and Finance Committee this Monday, Professor Ncube said dollarisation and price controls are not on the table, adding that sanctions placed on Zimbabwe make it difficult to raise US dollars even to pay civil servants to start with.
“It is very difficult for us to dollarise because we have lost 80 lines of credit, so there is no money to pay civil servants to start with. We expect that the interbank market will stabilise and give lead to economic growth,” he said.
The minister castigated business people who are charging high prices but said, as the government, they will not control prices as this is self-defeating.
“Price control may lead into shortages, but we expect that the interbank market will become efficient and rates will lower so this will stabilise prices,” Professor Ncube said.
He added that as the Iiterbank market continues to be harnessed, it will become stable and speculators will shun the parallel market in the shortest possible time.