In an interview with The Standard, Finance Minister Mthuli Ncube said the current economic policies are meant to create the right environment for currency reform.
Before he became Finance Minister Ncube said he would demonetize the bond note. Zanu-PF urged Ncube to look into the multi-currency system which they said is not working. Below is an excerpt of Ncube’s (MC) interview with The Standard (OM)
OM: The conference specifically urged you to look into the multi-currency system, which they said was not working. Do you have any immediate solutions in your mind?
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MC: The policies we have put in place are what we have in mind because you need strong policies, consistent policies, policies that begin to achieve results.
Before you resolve the multi-currency system, if you look at what we have done at the moment, we have first of all recognised that we don’t have monetary policy, we have no currency of our own, but we have fiscal policy.
We are using fiscal policy to stabilise monetary and value issues.
So by managing the budget deficit and curtailing expenditure — notice that the premium that we observe on the currency side has stabilised. Have you noticed that?
It is because we have closed the tap on the fiscal side. So we recognise this and we should continue to constrain ourselves in terms of expenditure, live within our means.
We are slowly creating the right environment for currency reform.
When we are ready, we will announce what we are doing, but we are aware that the multi-currency pricing system is prejudicing people but also legally, we have been telling people that it is illegal to practice a multi-currency pricing system. But we know people are practising it.
In fact, at this conference people were saying that you must implement the law, enforce it to make sure that it does not happen.
Really, we do not have to come to this where every time it is the strong arm of the law that is kicking in.
We are doing our part making sure that policies build up consistently to achieve the right results and steps toward the ultimate currency reform.