19 September 2018

Zimbabwe: Multi-Currency System Here to Stay, Says Mnangagwa

Photo: The Herald
Zimbabwe President Emmerson Mnangagwa.

President Emmerson Mnangagwa says the country shall continue using the multi-currency system until the economy was stable enough to allow the reintroduction of the local currency.

He was speaking during his State of the Nation Address before a joint sitting of the lower and upper houses of assembly Tuesday.

"My government through the Reserve Bank of Zimbabwe has negotiated a number of foreign exchange facilities amounting to US$500 million that are intended to meet the growing demand for foreign currency by business and the public in general," Mnangagwa said.

"Some of these facilities shall be disbursed this week to meet the expanding demand for foreign currency that continues to be sustained by fiscal imbalances which my government has made a great commitment to redress."

Zimbabwe long abandoned its own currency after it had significantly lost value compared to regional currencies and the US dollar.

The introduction of the US dollar as the anchor currency during the inception of the unity government 2009 brought relative stability to the economy but a later decision to print bond notes by government has backfired.

The surrogate currency, which was pegged at par with the US dollar on its introduction, has lost value with newly appointed Finance Minister Mthuli Ncube saying in past interviews with the media he was going to consider scrapping it.

MDC leader Nelson Chamisa says there will never be any quick fix solutions to the country's battered economy for as long the legitimacy of the current Zanu PF lled government remained disputed.

Chamisa insists he was robbed of victory in the July 30 election and has told Zanu PF they were capable of rigging elections but will not rig the economy.

But Mnangagwa remains steadfast the country shall recover from the crisis.

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