Zimbabwe: Ncube Shuts Door On Dollarisation, Says to Reintroduce Zimdollar

Photo: GroundUp
Zimbabwean dollar.
12 January 2019

Finance Minister Mthuli Ncube has put-paid to any hopes of the country adopting the US dollar to tame a revolting economy, insisting Friday that government was planning on reinstating the Zimbabwe dollar.

Ncube, under fire for torching the current economic tumult through his recent policy measures that have been unpopular with both business and locals, said adopting the US dollar or the South African rand would not solve the country's macro-economic problems.

"On the issue of raising enough foreign currency to introduce the new currency, we are on our way already, give us months, not years," Ncube said, adding that this would be done "in less than 12 months".

He was addressing delegates at a "Road to Davos townhall meeting in the capital" on Friday.

Ncube also defended his decision to separate foreign and local currency bank accounts saying this was the beginning of currency reforms.

The Zimbabwean government is under pressure to completely do away with the local bond note often described as fake currency by Zimbabweans who have seen the surrogate exchange lose value since its introduction 2016.

Locals want government to do away with the bond note and the RTGS and adopt a more stable currency such as the US or the rand.

But Ncube said adopting the rand would entail first acquiring the US dollar before purchasing the rand.

"In the long-term, Zimbabwe needs its own currency," he said.

"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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