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Quick Thoughts on #MPS2019
We are glad to say today's MPS announcement is consistent with 38% of the audience that casted votes under our last poll. Despite the majority preferring to adopt the Rand, the Rand was never going to be an option considering....(contd)
We are glad to say today's MPS announcement is consistent with 38% of the audience that casted votes under our last poll. Despite the majority preferring to adopt the Rand, the Rand was never going to be an option considering....(contd)
... the absence of the necessary prerequisites like 1) Acceptable Inflation target 2) Acceptable Debt/GDP ratio 3) Adherence to prudent fiscal measures 4) Own currency. So if the Governor was to go by the people's wishes he had to go by the Second best option- Floating the RTGS!
In our considered view, it is likely the rate will maintain at current levels considering there will be a significant supply of forex from the major exporters. Prices shld also remain at same levels since they were already factored in the rate
However the following are critical success factors:
1) Avoid Further money creation by adhering to fiscal budget targets
2) Avoid printing Bond Notes
3) Allow genuine free floating without RBZ eagle's eye
4) Allow for Market autonomy!
@BrezhMalaba @Mathuthu @PiersPigou
1) Avoid Further money creation by adhering to fiscal budget targets
2) Avoid printing Bond Notes
3) Allow genuine free floating without RBZ eagle's eye
4) Allow for Market autonomy!
@BrezhMalaba @Mathuthu @PiersPigou
