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We can never compare today and 2008 – Mangudya

John Panonetsa Mangudya, Reserve Bank of Zimbabwe (RBZ) governor declared that the interbank foreign currency market is not comparable to his predecessor Gideon Gono’s tenure.

Below are quoted excerpts of the interview:

 

 

TK: LET US TALK ABOUT THE TENURE OF YOUR PREDECESSOR, FORMER GOVERNOR GIDEON GONO. HE ALSO EXPERIMENTED WITH LIBERALISING THE EXCHANGE RATE AND THE CONSEQUENCES WERE QUITE CATASTROPHIC. A DECADE LATER, YOU ARE DOING THE SAME. SHOULD WE EXPECT A DIFFERENT OUTCOME?

JM: LET ME BE VERY BLUNT. WE CAN NEVER COMPARE TODAY AND 2008. THE ECONOMIC FUNDAMENTALS ARE SO DIFFERENT. YOU ARE SAYING RIGHT NOW COMPANIES ARE PRODUCING AND THEY ARE EXPORTING. AN ESTIMATED US$6,2 BILLION WAS EARNED IN 2018. IF YOU GO BACK TO 2008, THERE WAS NO FOREX TO TALK ABOUT. WE WERE BUYING BREAD FROM SOUTH AFRICA. THERE WAS NOTHING. SO, YES, RBZ LIBERALISED. WHAT HAPPENED IN 2008 AND NOW IS VERY DIFFERENT.

 

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