Source: Mnangagwa tells Zimbabweans why the country did not adopt the rand | Fin24
Zimbabwe did not adopt the rand due to onerous conditions set by the South African Reserve Bank, President Emmerson Mnangagwa said on Friday.
Speaking during a live radio interview, Mnangagwa said he was part of a committee that approached the SARB, with the intention of adopting the rand as “our domestic currency of Zimbabwe”– before Zimbabwe adopted the multi-currency system.
“But when we approached the SARB, they gave us a check list with certain conditions for us to use the rand.”
“It also needed South Africa to give us money (notes) that is commiserate with our GDP,” he said adding that some of the conditions were not acceptable.
He stated that the government led by Robert Mugabe then decided to use a basket of currencies without formally adopting them.
In 2016, the country tried to tackle the chronic shortage of US banknotes by introducing a parallel token currency called “bond notes”, which was meant to be worth the same as a US dollar. But the bond notes were in reality worth less than the green back.
Zimbabwe recently introduced a new currency the RTGS dollar, but is still allowing other currencies to be used for transactions. Plans are however in progress to ban the use of other currencies.
“Zimbabwe must reach a stage were it has its own currency which is the Zimbabwe currency. This will be announced at an appropriate time, when implementation is ready,” said Mnangagwa.
The country abandoned its currency, the Zimbabwean Dollar, after it spiralled out of control between 2008 and 2009 during Mugabe’s rule.
COMMENTS
ED and Eddie Cross do not want the Rand because they will become redundant liars to the people – simple.
“It also needed South Africa to give us money (notes) that is commiserate with our GDP,” he said adding that some of the conditions were not acceptable.:
Well of course South Africa would have conditions, they still have integrity and did not want their currency to meet the same fate as the Zimbabwe dollar. In addition they certainly would not want Zimbabwe printing the rand and causing rampant inflation for South Africa. I suppose that was one of the conditions imposed on ZANUPF
Zimbabwe need to have currency as a country,there is nothing can achieve if President and citizens don’t solve this problem.It’s better to borrow SA(Rnd)or Btswn(Pula)which will comply the rules and regulations for the use of the currency. Prices must be the same and it will bring the strong relation btwn the countries.