Minister of Tourism and Hospitality Industry, Walter Mzembi, has urged the government to adopt the South African Rand, and denounced the imminent bond notes. He said it was the most logical currency to adopt as South Africa was Zimbabwe’s biggest trading partner and most Zimbabwean emigrated to South Africa ahead of any other nation.
Speaking to South African television news channel, ANN7, on Wednesday, Mzembi said
I am following the debate on bond notes with a lot of interest. But notwithstanding the fact that I am a Cabinet member as Minister of Tourism and quite senior by any stretch of imagination.
I can understand what the government is trying to achieve in terms of inducing liquidity in the market, but the multiple currency basket already has nine currencies including the rand, which I have always submitted is part of the solution to the extent that 70% of our exports go into South Africa or via South Africa, 70% of our imports come from South Africa and 80% of our Diaspora, globally, are resident in South Africa and, therefore, they have an impact on the profile of remittances into Zimbabwe.So it just makes absolute sense that we align to a regional currency that favours us to that extent.