Zimbabwe to retain multiple currencies for “foreseeable future”

via Zimbabwe to retain multiple currencies for “foreseeable future”: finance minister Forum on Africa-China co-operation

HARARE, Sept. 23 (Xinhua) — Newly appointed Finance Minister Patrick Chinamasa said Zimbabwe is to retain the multi-currency regime for the foreseeable future as part of measures to ensure financial stability.

Zimbabwe is using the U. S. dollar, South African rand and Botswana pula, among other currencies, in the market after the collapse of the Zimbabwean dollar during the 2008-2009 hyper- inflation.

Chinamasa was credited for introducing the multi-currency regime in his brief tenure as acting finance minister in the first few months of 2009.

Though leaders of the ruling party, no less than President Robert Mugabe, have repeatedly bemoaned the lack of the country’s own currency, analysts say the government will not risk re- introducing the Zimbabwean dollar in which most Zimbabweans have lost their trust.

“In order to dispel any doubts on the market, I came back home to maintain the multi-currency regime,” Chinamasa said. “It will be with us, it will remain with us for an indefinite period.”

Zimbabwe’s economy only started to pick up after the multi- currency regime was adopted and an inclusive government was formed in 2009, after almost a decade of decline, ruining a formerly prosperous country known as the “bread basket of Africa”.

However, the growth has been slowed since 2011. The government predicts that the economy will expand by merely 3.4 percent this year.

Mugabe and his ruling Zanu-PF party won resoundingly in the July 31 elections and the new cabinet has been focusing on reviving the ailing economy.

 

COMMENTS

WORDPRESS: 5
  • comment-avatar
    Tjingababili 7 years ago

    THAT IS THE MOST SENSIBLE POLICY THE ZANUPF GOVT HAS EVER MADE IN OVER 30 YEARS!

  • comment-avatar
    Diego Zhaba 7 years ago

    Chinamasa can not in any way be credited introducing the multi-currency regime. Conditions of the time dictated the need for that. The currency was already the mode of transaction and the black market was thriving in these circumstances. The ailing Zim currency which had no value at all necessitated the change. Gono was printing the currency like toilet paper thus heavily impacting on the economy and its value continued to tumble. A closer look and analysis of the situation then can confirm that multi-currency use was already in place and he just made it look official, even though people may argue and say it was illegally being used.

    But the question is for whose benefit are we keeping the multi-currency? I recall it was one of the key campaign points by Mugabe that we were to revert to our Zim$ soon. Why keep other countries currencies ? Come up with your own and manage it accordingly. Ndihwo hurema hweZANU ka uhu. Be a ruling party enough to bring real change and we want our own Zim$. You blame US and the rest of the West for your own home grown failure but you want to keep those countries currencies. WHY?????????????

  • comment-avatar
    munzwa 7 years ago

    yes go for the local currency, my wheelbarrows are still in the shed.

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    cornholio 7 years ago

    What happened to my Z$150 000 000 000.00 that was in my account at the time you sold our currency to the “colonisers, the evil west”? Please Mr. Minister, I want it yesterdayoo!

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    maisokwazo 7 years ago

    And Mugabe and ZANU DID NOT AND HAVE NEVER WON RESOUNDLY. They rigged and stole resoundly STUPID