Published: 08 January 2018

The Confederation of Zimbabwe Industries (CZI) has called on Government to stop flooding the market with Treasury bills as these will leave the monetary sector vulnerable.

This reduction will be part of the economic sterilization programme, which will counter price increases and cash shortages caused by a balance of payments deficit.

Sterilization is a form of monetary action in which a central bank seeks to limit the effect of inflows and outflows of capital on the money supply. Sterilization most frequently involves the purchase or sale of financial assets by a central bank, and is designed to offset the effects on the money supply caused by a balance of payments surplus or deficit.

The industry feels the quick implementation of the programme will help the Government to arrest price increases and inflation.
- The Sunday Mail

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