CLEAN : Zimbabwe stock trading halt will have "adverse implications on economic confidence" (economist)

The video discusses the challenges of mobilizing fresh capital into the country and its adverse effects on the economy, particularly in terms of economic confidence. It highlights the government's concerns about the depreciation of the exchange rate due to parallel market activities. The video also examines the impact of limited capital inflows and foreign direct investment on employment, especially in the context of COVID-19, which has led to many companies closing down.

What is one of the main consequences of suspending fresh capital mobilization into the country?

• Severe adverse implications on the economy

• Improved economic confidence

• Increased foreign investment

• Higher employment rates

What is the government trying to address in the foreign exchange market?

• Inflation rates

• Parallel market activities

• Interest rates

• Stock market fluctuations

How does the Old Mutual implied rate affect the exchange rate?

• It stabilizes the exchange rate

• It causes the exchange rate to appreciate

• It causes the exchange rate to depreciate

• It has no effect on the exchange rate

What is a potential consequence of not attracting foreign direct investment inflows?

• Higher GDP growth

• No employment creation

• Increased employment creation

• Improved trade balance

What impact has COVID-19 had on companies already operating?

• Closure of businesses

• Higher employment rates

• Expansion of operations

• Increased profits