Monetary strategy used by Zimbabwe’s central bank

Expert Solution

Answer - The central bank of Zimbabwe has cut the overnight rates by around 10 percent from 25 % to 15 % , in order to enhance the lending in the economy. Its main and latest goal is towards the stable economic growth along with the lower rates of inflation. Also , along with this factor , the bank is also practising the de dollarisation process , in which it is aiming to reduce the dependance upon the foreign currency and the use of more and more local currency for the transactions to reduce the burden or the deficits. This is expected to take the time of around 5 years for the complete de dollarisation.

Rahul Sunny answered 2 years ago

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