The impact of exchange rate volatility on operations of local authorities in Zimbabwe. the case of local authorities in Mashonaland Central, Zimbabwe.
- Author
- Mangwanya, Tatenda
- Title
- The impact of exchange rate volatility on operations of local authorities in Zimbabwe. the case of local authorities in Mashonaland Central, Zimbabwe.
- Abstract
-
This study examined the impact of exchange rate volatility on operations of local authorities in Mashonaland central. The objectives of the study were to identify revenue generating systems of Local authorities, to determine how exchange rate volatility affect revenue generating systems of local authorities, to determine strategies which Local authorities are using for effective management of exchange rate volatility and determine the relationship between strategies used to manage exchange rate volatility and performance. The impact of exchange rate volatility on operations of local authorities in Zimbabwe has been a significant challenge for many years. The fluctuations in exchange rates affect the operational activities of local authorities, including revenue collection, budget planning, debt servicing, and procurement. The researcher used both primary and secondary sources of data. The researcher collected secondary data from the journals, newspapers, previous researches and thesis. The population size of this study comprised of 10 local authorities all allocated in Mashonaland central, Zimbabwe. To carry out this study, both qualitative and quantitative were employed. Data was collected through use of questionnaires and secondary sources. The researcher conducted a pilot study to test the reliability and validity of questionnaires before distributing them to the local authorities. Data was analyzed through a statistical package called SPSS version 20 and was presented and interpreted using graphs and tables. Data was tested for validity and reliability using SPSS version 20 . The research findings indicate that exchange rate volatility has a substantial negative impact on the operations of local authorities in Zimbabwe. This has been evidenced by decrease in revenue and challenges in financial planning and budgeting. The following recommendations are given based on the study's findings and its goals and research questions. Local authorities must stay familiar with the current exchange rate situation in Zimbabwe and therefore must come up with strategies which are effective in hedging against exchange rate volatility. Local authorities must use strategies which are well effective enough to hedge against exchange rate volatility. They must use strategies like holding foreign currency, charging forex exclusive prices, preferring cash payments, participating in forex auction programs and preferring early payments. These strategies are significantly strongly correlated with service delivery by local authorities in Zimbabwe.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Exchange rate
- Local authority operations
- Supervisor
- N/A
- Item sets
- Department of Accountancy