The International Monetary Fund has endorsed Zimbabwe's economic policies following the government's reduction in its dependence on central bank financing. The multilateral lender said this practice had previously driven inflation and exchange rate instability across the southern African nation.
IMF African Department director Abebe Aemro Selassie said on Thursday that Zimbabwe must maintain its current approach to secure long-term stability. He noted that past reliance on central bank funding created severe economic difficulties that must not return.
Reserve Bank Governor John Mushayavanhu pledged last April to end money printing for government expenses. The central bank has since stopped quasi-fiscal operations that fueled hyperinflation and currency volatility.
Finance permanent secretary George Guvamatanga said the economy has experienced its longest period of stability under the current administration. The ZiG currency trades at 26.71 per dollar after a September 2024 devaluation that addressed market distortions.
IMF African Department director Abebe Aemro Selassie said on Thursday that Zimbabwe must maintain its current approach to secure long-term stability. He noted that past reliance on central bank funding created severe economic difficulties that must not return.
Reserve Bank Governor John Mushayavanhu pledged last April to end money printing for government expenses. The central bank has since stopped quasi-fiscal operations that fueled hyperinflation and currency volatility.
Finance permanent secretary George Guvamatanga said the economy has experienced its longest period of stability under the current administration. The ZiG currency trades at 26.71 per dollar after a September 2024 devaluation that addressed market distortions.
