Zim dollar return: RBZ arm speaks

via Zim dollar return: RBZ arm speaks – DailyNews Live John Kachembere 6 DECEMBER 2013 

Reserve Bank of Zimbabwe subsidiary, Fidelity Printers Limited (Fidelity), says they have not yet been instructed to print the Zimbabwean dollar, amid reports that the central bank’s printing company had recalled all contract workers.

This has led to speculation that the Zimbabwe dollar could bounce back as the liquidity crunch continues to hit the nation.

“From time to time when the need has arisen, the company has over the years relied on contract staff, including former employees and will continue to do so,” said Terence Machawira, Fidelity’s legal counsel, in written responses to the Daily News.

“The issue of staff recalls in preparation for the resumption of currency printing that you have alluded to is news to us,” he said, adding that the resumption of use of local currency was the prerogative of government.

“As a high security printing company, we remain prepared and continue to seek currency printing business both locally and globally,” he said.

The southern African country ditched its local currency in 2009, after it had been rendered useless by hyperinflation which peaked at 231 million percent, in favour of a basket of multiple currencies that includes the United States dollar, South African rand and the Botswana pula among others.

Talk of Zimbabwean dollar return evokes sad memories for the majority of people in the country who lost their life earnings with the introduction of the multiple currency system.

At the height of the hyperinflation, the country became almost idle as industries closed down, while multi-national companies relocated to neighbouring countries and most local businesses were just operating at a loss.

The unemployment rate rose to over 80 percent and over three million people reluctantly left the country for menial jobs in neighbouring countries.

Although the new government has repeatedly tried to calm the market by dismissing rumours of an imminent return of the local currency, speculation has been rife that the Zanu PF-led government might prematurely re-introduce the discarded currency.

Speaking at the pre-national budget conference in Victoria Falls recently, Finance Minister  Patrick Chinamasa ruled out the return of the Zimbabwean dollar and said he did not want to hear any more questions about the local currency.

“The multi-currency system will remain for the next five years,” Chinamasa said.

“I do not want to continue being asked that question. It is going to be a multi-currency regime.

“The multi-currency system will be the form and basis of our programmes for the next five years.  Let that be clear to everybody. We might actually add more currencies to the cocktail of the currencies we are using now, depending on how that currency will be benefiting the country.”

However, the former liberation movement indicated in its manifesto that it was keen on bringing back the currency.

Economic analysts are of the view that the economy will not recover under the current multi-currency system, as the US dollar has proved elusive for most Zimbabweans.

However others insist that the immediate return of the Zimbabwean dollar will be disastrous given the prevailing environment.

The Zimbabwe National Chamber of Commerce (ZNCC) recently called on Chinamasa to unambiguously assure the nation that there will be no immediate return to the Zimbabwe dollar or resorting to any local currency as a precondition for efforts to boost waning investor confidence.

In its submissions towards the 2014 national budget, the industrial body said issues relating to currency reforms were very crucial in determining the nature, tenor and quantum of foreign investments and foreign lines of credit the country could lure.

“As part of the all-important confidence building process, we urge you honourable minister to be very clear with regards to government’s view of the multiple currency regime and categorically state that there will be no immediate return of the local currency,” ZNCC said in the statement.

“In addition to that, we implore that you, honourable minister, spell out the pre-conditions necessary for the re-introduction of the local currency. This is important in bringing certainty around possibilities on immediate currency reform.”

In order to dispel any such speculation on the possible near-future re-introduction of the local currency in the minds of the general public and investing community, ZNCC said, Chinamasa should state the model on which a local currency would be introduced.

 

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15 comments on “Zim dollar return: RBZ arm speaks
  1. Parangeta (Ramrod) says:

    I hope the bring back the Zim$, we need toilet paper badly!

  2. John Thomas says:

    Fidelities machines are bust and their staff useless. They can’t print diddley.

  3. mucha says:

    Why rumour-mongering? Silly article.

  4. Diego Zhaba says:

    Come out in the open. We need our currency and so US$ to Obama and Zim$ to Robert. We will keep our Zimbabwe.

  5. Tjingababili says:

    I THOUGHT THAT DR ZEROOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO HAD RETIRED!

  6. fkr says:

    Zim$ is a joke. The world needs a laugh, go ahead and bring it back

  7. spiralx says:

    No point in discussing the option. Until the country is being run properly (which will require a completely new government), industry is worth something, and commercial agriculture is up and stable again, feeding the country, there is nothing worth printing a Zim-dollar for.

  8. moyokumusha says:

    The reality is they need ” cash ” to pay the civil servants and there is nothing coming in. So buy a bit of time ( maybe 2 months ) by printing a worthless currency which has no collateral or value. It will have to be traded against the US$ as they will still have to import goods that are no longer being produced. Remember Rhodesia’s sanctions when we had everything because we made a plan and made it ourselves and remember the Rhodesian $ was US$1 equalled R$1. So we need to first get our economy back to its best before any chance of successfully reintroducing the Zim $. The value of your currency is based upon the demand for it and who would want the Zim$ to buy our goods which are over priced. Anything now is futile and will only worsen the situation.

  9. moyokumusha says:

    Sorry US$1,38 = R$1

  10. munzwa says:

    so Chino says he may introduce more currencies!!! Multi means any currency is acceptable that more than one trader would trade and at an agreeable exchange rate…so if the Zim$ is offered do with it as you please, trouble is the Govt will use it to pay the civil service!!!!then the exchange rate becomes crucial and will dictate whether the civil service has in fact had an increase…

  11. Chamunorwa says:

    Ohhhhhh! Well come to liquidity crisis again, Zimbabwe printing its currency again, God forbid, we are going the last mile of ZANU (PF) TOWARDS ITS END GAME. Guys, be prepared we have had problematic opposition which was interested with power more than the emancipation of Zimbabweans now its time to change even the way we oppose the system. It’s now time to change the system of the queast for change for the future generation. MDC-T my advice is that if you want to change Zimbabwe put in place policies within your party, that benefit the youth and let them lead their destination without controlling them, all we can do is guiding and advising them where they need us. I say this because they are the future and they need the chance to chose their destiny. Don’t forget their branches because they are located there not at the headquarters at Haverst House for, these at Haverst House are our brands. Remember that when ZANU (PF) came to power it’s secret was the youth and that spirit will work as long as human beings are still living on this earth, so give them priority SECRETLY.

  12. Boss MyAss says:

    OH COME ON WE HAD ENOUGH TRASH ALREASY

  13. Pasiparohwanenyundo says:

    An economy that hit rock bottom suddenly emerges using the most powerful currency in the world the US $, neighboring countries’ currencies are made to be traded against this now new zim currency which is so powerful yet no synchronized GDP to sustain such a powerful currency. One who works in S A for example when he trades his rands get meagre dollars to use and is scorned and called names because his money is little, but yesterday the one scoffing had trillions of zim dollars thatt were traded fora mere R100, how did the economic meltdown suddenly disappear and commodities in Zim had to be bought at exhorbitant prices and working in countries with a stable economy became a futile exercise. Who is fooling who here?

  14. mandlendoda says:

    zim $ ?????? again hahahaha

  15. chief says:

    why are u hating your own currency.from the above comments l didnt so any comment which is worth barring our currency.Lets have economic arguments not political arguments.

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