President Emerson Mnangagwa

ED speaks on new currency

President Emerson Mnangagwa says government took the decision to adopt its own currency to allow the economy to take off and have effective control of the monetary policy.

Chengetai Murimwa in Victoria Falls 

He said while the multicurrency regime had helped to stabilise the economy, it did not give control of monetary policy and left the country at the mercy of United States dollar pricing which he said had been a root cause of inflation.

The President said the conditions were in place to have Zimbabwe have its own currency.

“When the majority earn in the local currency, but goods are priced in US dollars, the outcome will only ever be a two tiered economy: Stable and affordable prices for those with access to dollars, while the majority face an unrealistically high cost of living. This is unfair and unsustainable,” Mnangagwa said.

He said there were issues to be dealt with before introducing the new currency and under Finance Minister, Professor Mthuli Ncube, a lot has since been achieved.

“Central to this was regaining control of our budget, through decreased spending, increased revenues and, for the first time in recent memory, budget surpluses. Under the careful guidance of Professor Ncube, this has been achieved.”

He said the Statutory Instrument to abolish the use of multiple currencies, and make the Zimbabwe dollar the sole legal tender with immediate effect is a key component of the transitional stabilisation programme and an important step in restoring normalcy to the economy. 

The President said: “On a day to day basis, this will change very little. People will still be paid in RTGS dollar and bond notes, and goods and services will be priced in the same currency. Those holding Nostro accounts will still have access to those accounts in the currency they held.”

 

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