IMF’S 174.2 M DOLLARS LOAN SHOULD BOOST ECONOMY
The announcement by the Central Bank that the country is set to receive US dollars 174.2 million loan from the International Monetary Fund (IMF) to revamp the economy is a welcomed move which should see the up-dive in the economic improvement. The money is also to pay salaries of civil servants including back-dated arrears. There are many cases that need urgent attention but priority should be given towards cases that are seriously demanding. There should be more opening towards commercial banks which would help in the reduction and stabilization of the high rates of foreign currencies in the market. Strict measures should be applied in the management of the funds to be able to improve the purchasing power of the common-man by reducing the high prices of the basic commodities in the country. The soaring of commodity prices have placed some citizens at bay and far from having the necessary required three meals a day in homesteads. The loan should be able to bring back smiles into the faces of those who were almost losing hopes. Measures which the bank has put in place will surely help control the high exchange rates being applied in the black market and commercial banks should be equally monitored to live up totheir expectations by abiding with the regulator’s requirements. It will be appreciated when the bank gradually build international reserves to enhance foreign exchange policy ‘s credibility and its ability to respond effectively to any future imbalances in the foreign exchange market wich they have effectively promised to do. The success of the planned action will depend not on the Central Bank alone but should include key players in the financial sector who are keen to see the economic growth in the country. This should be a reality faced by positive minds not in words alone but accompanied with actions.