Indian Rupee to be legal tender in Zimbabwe

via Indian Rupee to be legal tender in Zimbabwe JANUARY 30, 2014 NehandaRadio

The Reserve Bank of Zimbabwe (RBZ) announced Wednesday that it was adding the Indian Rupee to the basket of currencies to be circulated in the country. This it said was in view of the growing trade between the two countries.

In addition to the Botswana Pula, British Sterling Pound, Euro, South African Rand and United States Dollar, the central bank also added the Australian Dollar (AUD), Chinese Yuan (CYN), Indian Rupee (INR) and Japanese Yen.

The addition of four Asian currencies to the multi-currency system, brings to nine the international currencies circulating in the country.

In a statement, Acting Governor of the Reserve Bank of Zimbabwe Charity Dhliwayo also said Wednesday’s decision should put to rest the widespread speculation surrounding a re-introduction of the Zim-dollar.

Zimbabwe abandoned the use of its own currency in 2009 after world record inflation levels precipitated an economic collapse under the Zanu PF government. It was a coalition government in 2009 that introduced the multi-currency system that brought stability.

Monetary Policy Statement major highlights

• Banks’ $100 million capitalization deadline moved from 2014 to 2020.

• The country will continue with the use of multiple currencies.

• Chinese Yuan, Japanese Yen, Indian Rupees and Australian Dollars now accepted and used in Zimbabwe.

• The Reserve Bank will resume its traditional function as the banker to Government with effect from 31 March, 2014.

• As at 31 December 2013, total banking sector deposits amounted to $4.73 billion while loans & advances were $3.70 billion.

• Total banking sector assets as at 31 December 2013, were $6.7 billion.

• The loans to deposit ratio was 78.29 percent as at 31 December 2013.

• Capital levels will remain as per the thresholds obtaining in December 2012 ($25 million for commercial banks).

• Individuals constitutes the highest proportion of total lending at 23.80 percent

• The banking sector’s average non-performing loans to total loans ratio (NPLs/TLs ratio) stood at 15.92 percent as at 31 December 2013.

• Provision to criminalise bankers for negligence and fraudulent activities.

• Prohibits loans to insiders and related parties.

• Existing insider loans should not be renewed or rolled over.

• The level of total insider loans in the banking system was $175.3 million. Of these insider loans 66.97 percent was non-performing.

• The Reserve Bank will closely monitor compliance with the required maximum fixed asset ratio of 25 percent.

 

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10 comments on “Indian Rupee to be legal tender in Zimbabwe
  1. hutu says:

    Desperation. Hutu told you… Watch this space……

  2. John Thomas says:

    Maybe this is an initiative from the psycomotor ministry

  3. Doris says:

    So, tell me, how are the shops going to mark up their prices? How long will we have to stand in queues at the tills while the till operator tries to figure out the rate of exchange for the day? What currency will the banks maintain for accounts? This just has to be a non starter. There isn’t a brain in government capable to working this nonsense out.

  4. Nona says:

    Gono in disguise.

  5. Mixed Race says:

    Wait and see what confusion the Indians and Chinese will cause to the innocent masses.They will accept your USA dollars and they will give you change in their currency because they have found an easy way of getting USA dollars.
    I really feel for the poor masses who will be cheated every time they buy from an Indian or Chinese shop.This is legalising theft in a clever way.
    The public should be advised not to accept any change above one USA dollar in their currency.If you buy in USA dollars you must insist to get your change in USA dollars.

    • Inkuku says:

      hahaha..Zim is such a joke right now. @Mixed Race that is so true.The poor will get poorer when these crooks are done with them.

  6. Torai hupfumi says:

    Hama dzangu ndiyo Zimbabwe yacho said Mapfumo

  7. Torai hupfumi says:

    Charity you are very fesh Pliz be-careful you will be used and be jailed. Chii chanetsa pane mari yatanga tichishandisa pane paya shaikwa here vanhu vachida kubhadharwa can someone explain. Kunyanya nyakutaura people of zimbabwe needs to know we have right to that information. Zvakataurwa here nedare guru rehurumende?. Zvokuti vanhu vati chino neicho about ZIM –DOLLLLAR hazvina basa ndiko kutonga kwacho sekwamaita kuwinza dzimwe mari pasina kubvunza saka tongai asi motanga mabvunza vanhu veZIMBABWE ndivo varidzi venyika.

  8. Zanupf says:

    Mass boycot to buy from theses eastern muggers . That will force them out of the country

  9. Chitova weGona says:

    Zimbabwe! A theatre of drama! Indian rupee coming? Its well well overdue for zanu to admit that the country is too big for their little brains. Where exactly is the country going? They can change the currency a trillion times but because they are the problem we wont get anywhere. Siirai vamwe vatungamire. Kurwa hondo nekutungamirira nyika are two different things.

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