Mugabe backs rand adoption

Source: Mugabe backs rand adoption – DailyNews Live

Tendai Kamhungira      23 February 2017

HARARE – President Robert Mugabe has backed Zimbabwe’s adoption of the
South African rand as its main currency.

After ditching a worthless Zimbabwe dollar in 2009, the country has been
using several currencies – United States (US) dollar, yuan and the rand,
among other – along with the recently introduced bond notes, a currency
surrogate to the greenback.

Speaking in an interview to mark his 93rd birthday, Mugabe said he had
actually advised Finance minister Patrick Chinamasa and Reserve Bank of
Zimbabwe (RBZ) governor John Mangudya on the idea to adopt the rand, but
the two have not been forthcoming on the proposal.

“I don’t know why the ministry of Finance, together with the RBZ, have not
wanted to use other currencies. I have asked actually again and again kuti
(that) why not have euros, why not have yuan… why not have rand
alongside the dollar?” he said, adding that all Chinamasa and Mangudya say
is “ahh tichazviita, tichazviita (we will do it)”.

“At least if we had the euro, I don’t think we have sanctions on the euro,
but the euro is slightly more expensive than the dollar but the difference
is minimum,” Mugabe said.

This comes as representatives of the Bankers’ Association of Zimbabwe and
Confederation of Zimbabwe Industries (CZI) have advised Parliament’s
Finance portfolio committee that adoption of the rand is one of the key
measures required to address the current crippling cash crisis.

In a recent presentation on the liquidity crisis at an economic outlook
symposium hosted by the CZI, University of Zimbabwe (UZ) economics
lecturer Ashok Chakravat – also advisor to the President’s Office and
Cabinet – advocated for the adoption of the rand, arguing that the bond
notes can only ease the liquidity crisis if there is adequate supply of US
dollars.

“While RBZ recently indicated that Zimbabwe was in no position to join the
South African Customs Union, as per requirements the immediate solution is
informal adoption as in 2009,” he said.

Respected economist and RBZ committee member Tony Hawkins has also
supported adoption of the rand, only if it is accompanied by devaluation.

He said though the rand has downsides, being a volatile currency, it was
relevant, particularly in the Zimbabwean setup.

However, Mangudya has argued that it is not possible for the country to
adopt the rand on the basis it could worsen the economic crisis being
faced by the country.

“We could have joined the Rand Monetary Union (RMU) or Southern Africa
Customs Union (Sacu) in 2009, but there are certain criteria we need to
meet to do that. That is why we adopted the multi-currency system, and not
a single currency,” he said.

“What you are asking for is very dangerous because we might find ourselves
in a worse situation. We cannot be members of the Rand Monetary Union
without our own currency,” Mangudya said.

At the moment, the RMU comprises South Africa, Namibia, Swaziland and
Lesotho, although the three countries still use their own currencies,
which trade at par with the rand.

COMMENTS

WORDPRESS: 11
  • comment-avatar

    He probably thinks that he will be able to print rands. They will never allow a failed state to join the rand monetary area.

    • comment-avatar
      Joe Cool 5 years ago

      Why not? The rand is a failed currency.

      • comment-avatar
        GODOBORI 5 years ago

        “I don’t know” and you hold the whole nation to ransom. You’ve decimated our children’s future while sending yours to Hong Kong; Singapore and Dubai. Mache nde Amai

  • comment-avatar
    Emperor 5 years ago

    The Rand is a super Currency and exchangable in London.

  • comment-avatar
    TJINGABABILI 5 years ago

    HE IS ZIMBABWE’S CEO AND SHOULD MAKE THE DECISION. INDECISIVENESS IS NOT THE ANSWER.

    • comment-avatar
      Chatham House 5 years ago

      No wonder it is a failed company – what a ingoramus CEO.

  • comment-avatar
    Doris 5 years ago

    Having watched his birthday interview I doubt he is capable of knowing what he wants for breakfast

  • comment-avatar

    the comments from RBZ governor do not reflect the situation on the ground.we just need a stable and available currency and the rand is more convenient.its only that we will have to change our prices to Match RSA to avoid market forces acting against us.the us dollar has made our products,the most expensive in the world.we must avoid a situation where the us dollar is with the few people who enjoy life and the rest of the population is suffering and those few guys are clinging to the us dollar.its economically unhealthy.the rand can work informal or formal,they kindly must talk to SA govt for special permission to use it without joining the rand union because our country cannot have its own currency now.i think and hope RSA would understand our crisis.

  • comment-avatar

    There nothing healthy about Zimbabwe. Whatever utterances come out of the Zanoids it’s all rubbish, lead to nowhere but bloody misery. Rot in hell you

  • comment-avatar
    Godobori 5 years ago

    There, a hyena trying to tell the shepherd who ate the goats! When are people going to wake up to this? Why go to a mosquito for advice on what to do with the malaria menace!

    Kana kuunza all the capital of the world into Zimbabwe, there will never be a better country. That capital will varnish within a breath as soon as it reflects. That is RGM and his cohorts’ core business. They are finished with Chiadzwa. He goes to Dubai and Singapore. Vana Airforce Mharapara mbudzi munofira muno mugeto iye nemhuri vachienda uko vakongonzwa kuswinya. Apa Gushungo Holdings is a reflection of the gross incapability and ineptitude of that family. Even as they got stolen capital from the black market, assisted by Gono and Makuvise.

  • comment-avatar
    widzo 5 years ago

    What a mdidi go to double hell president