Multi-currency regime to stay for 5 years – Sunday Mail

via Multi-currency regime to stay for 5 years: Chinamasa Sunday, 03 November 2013 by Zvamaida Murwira  Sunday Mail

Zimbabwe will continue using the multi-currency system for the next five years and chances are Government will increase the number of currencies being used as legal tender in the country, Finance Minister Cde Patrick Chinamasa has said. Speaking at a pre-budget seminar here yesterday, Cde Chinamasa disclosed that the multi-currency system will form the basis of Government’s economic policies over the next five years.

“The multi-currency system will remain for the next five years. I do not want to continue being asked that question. It is going to be a multi-currency regime,” he said.

“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.”

Cde Chinamasa highlighted that policy consistency will be evident in all Government programmes, adding that some of the issues they are seeking consensus on include indigenisation and land tenure.

Turning to industry, Cde Chinamasa conceded that there is need to revive industries in Bulawayo, but was quick to point out that equal focus is also needed in other cities.

“The de-industrialisation is countrywide, not only in Bulawayo. I know of four towns where you will not find smoke coming out from their industrial areas.

“Talk of Rusape, Mutare, Marondera, these are some of the towns whose industries have totally collapsed. Let us not politicise the issue,” he said.

Minister Chinamasa disclosed that work towards the revival of Ziscosteel had already commenced.

“The new investor wants a dedicated railway line for coal supplies; they want a dedicated power supply line and we are talking of dam construction, the setting up of a new power line, and that takes a bit of time.

“We need to understand that the new investor will assume debts we have and when that is done we are good to go,” he said.

Minister Chinamasa highlighted that the 2014 budget will put emphasis on supporting the small to medium- scale enterprises and the agricultural sector.

“The SMEs are now more than the industries. The finance sector is failing to lend them money, but we want to support them and help them grow.

“The same goes for the tobacco farmers. There were 2 000 farmers in the year 2000, but after the land redistribution exercise, there are now 19 000 farmers and they also need to be supported,” said Minister Chinamasa.

He noted that Zimbabweans need to work towards changing the negative perception that the international community has of the country.

“I am told that if we go and borrow funds, we are charged 7 percent more (interest) than other countries because of negative perception and this is done through middlemen who put their mark-ups. So let’s work on confidence-building measures so that we have a new image of our country.”

Cde Chinamasa is expected to present the 2014 national budget later this month.



  • comment-avatar
    woosafoolinawho 9 years ago

    And the monies from the diamonds??

  • comment-avatar

    Yeah. The new china-masta currency is gonna be the worthlessrenimbi yuan to complement the new quintillion gono dollars being cranked off the fidelity printing press. Cos they totally bankrupt and can’t print USA dollars. Don’t suppose china-mass sleeps at night

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    easily fooled 9 years ago

    Is the USD staying? Is diamond backed Zim dollar not coming in April 2014. Why staying for 5 years? Bcoz you have no hope of resusitating the economy until the next election? Who is fooling who?

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    msizeni silwelani 9 years ago

    The minister unashamedly pronounces that the new investors have agreed to assume debts of companies they are interested in. The business approach that we decried when the gvt forced councils and the power utility to cancel what they were owed by residents and high other impact users. The new investor would expect a uninterrupted supply of water and electricity from the same broke entities.

    Our bullish image cannot be sorted as long as our pompous leaders do not engage people with sound business acumen to help unravel this business puzzle.

    And what happened to the bearer cheque and its predecessor, the zimdollar? Perhaps the minister will answer this once and for all. Am intrigued by your mastery of socio-political economy. You headed its destruction, brought in the quad currency system and now you have to defend jealously the British and the American currency. Lets see if you last the distance this time.

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    Bruce 9 years ago

    remove ZANU PF today and put any currency you desire in Zimbabwe it will work. the USD in Zimbabwebwe is not as strong as the USD that trades elsewhere. The one in Zimbabwe is ainfluenced by ZANU PF.

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    chimusoro 9 years ago

    I really believe this! I will be banking my $US tomorrow!

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    Mr Mixed Race 9 years ago

    I find it hard to believe in what the minister said in his address.When these selfish so-called business men were deliberately destroying big companies in Bulawayo under the misguided buying and reselling of these important institutions the government allowed it.I knew then that this would backfire in a few years to come.Bulawayo had industries which were really supporting the sub-continent with highly technical processes eg railway wagons repairs,high quality shoes from G and D,metal foundry and many clothing factories.Its easy to destroy but very hard to rebuild, particularly when we have no money of our own.Some people thought they were punishing us here in Byo but their thinking was guided by selfishness and lack of proper business practices.They might have become temporary millions but money acquired this way does not last forever.Its good that our ministers are gradually facing realities of daily life as pressure amounts on their back yards. The central government has lost millions of tax revenue due these so-called smart business men who have ruined many companies.