RBZ governor speaks on the return of the Zim dollar

Posted by Tayana

Reserve Bank of Zimbabwe governor Dr John Mangudya told The Sunday Mail that the Zimbabwean dollar would only be reintroduced when sound foreign exchange revenue was guaranteed. He said monetary authorities would not “force bond notes on anyone”, adding that the notes would constitute just three percent of money in circulation. An independent panel will oversee issuance of the bond notes. He said,

Zimbabweans should understand that introduction of bond notes doesn’t mark the return of the Zimbabwe dollar through the back door. We can’t just say the Zimbabwe dollar has returned when we haven’t achieved the macro-economic fundamentals or conditions that allow us to use our currency.

He also added,

Key economic fundamentals or conditions for the return of the local currency involve balancing the export bill against the import bill for over a year. This means the economy has the capacity and ability to generate foreign exchange to meet its domestic and foreign requirements, development and promotion of foreign exchange revenue streams. Without this, there’s no way we are going to return to the Zim dollar. If Government has a balanced and sustainable budget, that way we will be able to return to our local currency.

There is fear the Bond Notes will mark the return of the Zimbabwean dollar and the 2008 era.

More: Sunday Mail



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