Minister of Finance and Economic Development Mthuli Ncube has insisted that the government will not be introducing price controls despite the skyrocketing prices of basic goods.
The Minister also said that the government will not be dollarizing the economy to stabilise things because it does not have the capacity to raise funds for the salaries of civil servants.
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Responding to questions in Parliament, the Minister said,
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…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.
The Minister also insisted that the Interbank foreign currency exchange was going to pick up soon as investors were going to shun the parallel market.