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UPDATE ON NEW CURRENCY: To Be Sole Legal Tender, Principles In Place

President Emmerson Mnangagwa has said that the government is working on modalities to introduce a new local currency. He also said that the new currency will be the sole legal tender for domestic transactions and fundamentals have now been put in place.

Speaking to the business media outlet, Bloomberg, on the sidelines of the 12th US-Africa Business Summit in Mozambique, on Thursday, the President said that it was imperative for Zimbabwe to have its own currency.

Mnangagwa added that the value of the new currency will have to resonate with the country’s economic activities and assets. He added:

We must have a domestic currency so that will be the currency which we will use for transactions in the country. Anybody who has US dollars or a tonne of pounds must go to the bank and change and transact . . . the money supply will relate also to our GDP; it will relate to the volume of assets we have; to development of infrastructure in the country.

The president further said that the increasing growth in key economic sectors such as mining and tourism would easily support the anticipated currency.

Separately, Finance Minister, Professor Mthuli Ncube, also said that the government has successfully reduced its domestic debt and narrowed the current account deficit by sharply reducing imports.

Zimbabweans are still haunted by the 2008 hyperinflation and fears abound over the possibility that the new currency might go the same way. The soaring inflation is doing less to help the situation.

 

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