IMF readies for Zim Staff Monitored Programme

15 Apr, 2019 - 12:04 0 Views
IMF readies for Zim Staff Monitored Programme

eBusiness Weekly

HARARE – The International Monetary Fund (IMF) has said it intends to expedite the implementation of the  impending Staff Monitored Programme (SMP) for Zimbabwe to augment  government efforts to turn around the economy.

Last week, Zimbabwe and the IMF agreed on steps that will pave way for  a Staff Monitored Programme (SMP), which entails the monitoring of  Zimbabwe’s economic targets and policies by the financial institution.

Zimbabwe has previously undergone successful SMP’s between 2013 and 2015 and it is hoped that the successful completion of the impending SMP  will help the country in its global re-engagement drive.

IMF managing director Christine Lagarde reaffirmed the institution’s  eagerness to support Zimbabwe’s economic reform programme.

“First of all, I would like to reaffirm that we will be conducting a  staff monitored program with Zimbabwe. And it is particularly  appropriate that we do that expeditiously, given the hardship and the  loss caused by the recent cyclone,” she told a press conference in  Washington on the sidelines of the IMF spring meetings.

The SMP, which will be monitored on a quarterly basis, aims to  implement a coherent set of policies that can facilitate a return to  macroeconomic stability.

Successful implementation will assist in building a track record and  also facilitate Zimbabwe’s re-engagement with the international  community.

The policy agenda to be monitored under the SMP is anchored on  Zimbabwe’s Transitional Stabilization Program and emphasizes fiscal  consolidation, the elimination of central bank financing of the fiscal  deficit and adoption of reforms that allow market forces to drive the  effective functioning of foreign exchange and other financial markets.

Asked on the IMF’s views on the intended re-introduction of a new  Zimbabwean currency within the next twelve months, Lagarde said the  envisaged currency reforms should also incorporate the use of  technologies to promote financial inclusion.

“The second point that I wanted to mention, which I believe can and  will help Zimbabwe as well… given the current monetary and currency  situation, if used in a smart way, I would hope that financial  technologies can be deployed in order to include as many (people) as  possible,” she said.

“And any knowledge, any best practices that we are aware of, we will  certainly make them available in the course of the weeks to come.” – New Ziana

Share This:

Sponsored Links