'Re-dollarisation Would Have Created A Lot Of Problems'

Finance and Economic Development Minister Mthuli Ncube said that the re-introduction of the Zimbabwean dollar was done in order to avert spontaneous re-dollarisation.

Ncube stated that those with foreign currency will have to convert it to local currency at banks or bureau de change. He said:

It means that anyone who wants to buy goods from the shop or pay for services within . . . Zimbabwe ought to go to a bank, bureau de change or some other institutions to change their foreign currency into domestic currency and spend that whichever way they wish to spend. That’s what countries normally do, that’s what all countries do.

A Harare-based economic commentator, Gift Mugano supported the move, saying that re-dollarisation would create many problems for the economy. He said:

The policy makers saw that re-dollarisation is coming back and this was going to create a lot of problems since the economy does not have adequate resources to back dollarisation.

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Another economic commentator, Persistence Gwanyanya said for this move to work, there must be confidence. Said Gwanyanya:

The framework is good but there must be confidence for it to work. Lack of confidence has been a huge challenge and if the Government is serious about this currency regime, there is a need to ensure confidence is restored.

More: Chronicle