Zimbabwean President Emmerson Mnangagwa days those manipulating the exchange rate will be dealt with.

By BLESSINGS MASHAYA

ZIMBABWEAN President Emmerson Mnangagwa has warned unscrupulous individuals and businesses manipulating the foreign currency exchange rate that they will soon be exposed and face the full wrath of the law.

This comes as pressure continues to mount on authorities to act decisively on skyrocketing prices of basic goods and the depreciation of the local currency.

Speaking during the on-going Zanu PF youth league conference in Harare, Mnangagwa implored party members to expose all economic saboteurs.

“We are aware that some of our people are working with detractors to bring about regime change through the manipulation of our exchange rate and unjustified price hikes.

“My government is seized with this matter and perpetrators will soon be brought to book.  I exhort the youth of our country to be vigilant and help expose all these deviant malcontents and counter-revolutionaries.

This comes as the Reserve Bank of Zimbabwe (RBZ) is fretting over inflation which is spiralling out of control due to unstable black market rates and the impact of the ongoing Russia-Ukraine war.

In a statement on Tuesday, RBZ governor John Mangudya said the central bank’s Monetary Policy Committee (MPC) met last week and raised concerns  over the country’s inflation rate.

“The committee noted with concern the recent uptick in month-on-month inflation, from 7.7 percent in March to 15.5 percent in April 2022, and the increase in annual inflation from 72.7 percent in March to 96.4 percent in April 2022.

“The increase in inflation was as a result of a combination of global shocks and the pass-through effects of the recent exchange rate depreciation on the parallel market, with a significant proportion of the inflationary pressures emanating from the impact of the on-going Russia-Ukraine conflict.

“The recent exchange rate shocks are a manifestation of negative sentiments or perceptions attributable to people’s past experiences with hyperinflation and inevitable losses incurred during currency reforms.

“The committee further noted that the erosion of people’s savings due to inflation compelled them to try and avoid similar losses by holding the United States dollar (USD) as a store of value,” Mangudya said.

Parliament has since summoned Finance minister Mthuli Ncube to issue a ministerial statement on measures the government would take to stem the price increases and halt foreign exchange rate manipulation.

Ncube has agreed to issue the statement next Thursday.

Meanwhile, Mnangagwa also issued a chilling warning against party members pursuing factional and tribal agendas.

“Peace, love, unity and respect for one another must guide your elective processes. Regionalism, tribalism, chicanery and vote buying have no place in our party.

“The party constitution, principles and values along with the culture of the Second Republic, should always be your beacon.

“The youth league structures across the provinces are directed to close ranks and work with unity of purpose.

“Together, with your affiliate organisations, you are called upon to harness the youth demographic dividend riding on modern technologies to mobilise the youth to join the party and to register to vote for Zanu PF,” he said. – Daily News