Zimbabwe To Introduce Own Currency This Year, Rand Or US Dollar Not Solution – Mthuli Ncube

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Finance and Economic Development Minister Professor Mthuli Ncube yesterday hinted Zimbabwe will have its own currency within the next 12 months.

He said Government is working to raise foreign currency to anchor the new currency. Addressing delegates at a “Road to Davos” townhall meeting held in the capital yesterday, Prof Ncube said adopting the United States dollar or the South African rand would not solve the country’s macro-economic problems. Said Ncube:

On the issue of raising enough foreign currency to introduce the new currency, we are on our way already, give us months, not years. There is a balance between preservation of value and removing price distortions. The separation of accounts between the FCA and RTGS accounts was the beginning of currency reform. I also hear that the citizens are pushing towards adopting the rand, I even argued for it years ago and there was a reason, you know, if we are going to assume the rand as our currency we first of all have to acquire the rand and we need US dollars first to purchase the rand, in the long term Zimbabwe needs its own currency. Our job is to introduce a currency that will be stable and less volatile. Dealing with the fiscal side is the first order to move towards a stable currency, after all what we have now is fiscal policy and now monetary policy and we have to tighten the belt on the currency volatility.

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11 comments

  1. Niyehluleka Reply

    Eliminate corruption,admit that you have failed or you are all failures.We have the bond note that you have been talking about,so what has changed Sir? The present Zanu pf has changed things from bad to worst. Stubbornness of VP CC is not gonna help, stupidity of VP Mahodi is a waste of money, discharge him of his duties.Lastly President ED just seek advice from RG,he won’t shut you out.I’m not a Zanu of member nor MDC.

  2. Remedio Fernandes Reply

    We already have our own currency. It is called the bond. It is plentiful; I have $100 in 25c coins and I can get another consignment of 400 coins next week! And we have to tighten our belts! Mr Minister, you seem to have had little success in getting our voracious ministers and parliamentarians to put on a belt let alone tighten it. So how do you propose to satabilise the economy when chefs are making a killing each on the golden pavements of CBD.

  3. Remedio Fernandes Reply

    On a related note. The Reserve Bank Governor promised to resign if the bond note failed. It has failed and dismally. Who out there knows how to organise a digtal petition -similiar to those organised by AAAZ – to get him to resign. As the public we need to see consequences for irresponsible actions.

  4. Anonymous Reply

    Understandable Mthuli thankyou. Truelly what is are saying give us hope. We cant wait for our own currency. I like the way you stand firm on everything you say and do. All we need for this country to take is a proper local currency NOT bond note manufactured from zanupf offices. Thank you Mthuli

  5. Ian smith Reply

    This local currency thing wont affect me because i have learnt that i should not trust the zimbabwean government. 1. Do not put your money in zanu banks 2. I will change that goddanm tsvna yeLocal to forex as soon as it touches my hands. And i will continue to have this attitude until i die

  6. M. M. Ahmed Hassim Reply

    What is the Honorable Minister basing the new currency on? Is it going to be pegged against gold reserves? What guarantee does he have that the currency will be stable when previously inflation reached millions of percentage points. We currently have the bond note which is already a failure. The way things stand the only way forward is to dollarize or adopt the Rand. The Minister has emphasized that to adopt the Rand requires USD to buy same and we don’t have USD. A simple solution is for Government to stop buying Luxury cars for Ministers, Chiefs etc. And stop unnecessary expenditure on ‘Perks.’ We the ordinary citizens who voted for them to alleviate poverty and hunger work had to earn a living and don’t enjoy a multitude of perks. Rather it is our taxes that the Government uses for their lavish lives and we continue to bear the brunt of their mismanagement. So I suggest that the Reserve Bank Governor resigns forthwith as he is responsible for the mess that we are in and the Mr Ncube makes every effort to either dollarize or adopt the Rand for us to look forward to a better and lasting future

  7. Mathew Reply

    The first step is to allow civil servants to strike then fire them all after all they are just a bunch of corrupt drunkards. Secondly, tell all local authorities and parastatals to slash their wage bills by 75% so as to release money into service delivery. This second lot spends more money on unnecessary board rooms and is just a bunch of organised criminals. This area is where political corruption is encashed. After these two processes, get patriots who respect our national institutions to invest in the private sector not thugs who do not respect our banks courts etc. After the above introduce a currency and everyone to start at 100 dollar equivalent including parastatals and local authorities. That’s the best prescription Mr. Minister. it will be painful, but must be done.

    • Anonymous Reply

      Is this bad comic book logic? Not even comic books have logic this bad. Fire all civil servants? Then what? You think nzimbe dzakaita vote kuChiredzi can run the government here?

  8. Tatambura Reply

    We have our currency already. Bond Note. That is buying nothing in our country and outside, then, what’s new currency are you talking about? Bvumai chete kuti mazvitadza izvi and makazviradza kare.

    Ipai Chamisa tsvimbo dzake chete. Tisununguke vana veZimbabwe. Tatambura.

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