‘Zim does not deserve own currency’
Deputy Prime Minister Arthur Mutambara says Zimbabwe will not use its own currency until such a time capacity utilisation has risen to levels that can sustain the value of the local dollar.
Addressing delegates attending a London Stock Exchange symposium on Friday in Harare, Mutambara said Zimbabwe should continue to pursue various economic reforms before rushing into making currency changes.
Mutambara said the policy not to have a local currency in the interim was shared by principals in the inclusive government.
“Our desire is that the Zimbabwe dollar should not come back until we deserve a currency,” said Mutambara.
“At the moment we don’t deserve to have our own currency. Maybe in 2015 or 2020 can we start thinking of our own currency.”
In an attempt to restore credibility in the monetary system and arrest the hyperinflationary trend, the inclusive government introduced the use of multi-currency in January 2009.
Mutambara said however if elections were to be held there was no guarantee that whoever wins the polls will continue on the same path.
“That is the uncertainty that as a country we have to address if we are to attract investment,” he said.
The decision to “dollarize” the country’s economy, one of the first acts of the inclusive government has brought stability and stemmed inflation.
Finance minister Tendai Biti in August last year said the existing multiple currency regime will continue until 2012 when it is likely to be replaced by a single currency for the Southern Africa Development Community.
Biti told a meeting of the Institute of Chartered Accountants of Zimbabwe in the resort town of Victoria Falls that it was likely the Zimbabwe dollar would not be brought back into circulation.
“We have said the currency regime will only be looked into after 2012,” said Biti.
“The debate is then what happens after 2012. It will depend more on regional integration as you know that respective states are working towards integration and the possibility of using a single currency,” he said then.
Mutambara said the policy not to have a local currency in the interim was shared by principals in the inclusive government.
“Our desire is that the Zimbabwe dollar should not come back until we deserve a currency,” said Mutambara.
“At the moment we don’t deserve to have our own currency. Maybe in 2015 or 2020 can we start thinking of our own currency.”
In an attempt to restore credibility in the monetary system and arrest the hyperinflationary trend, the inclusive government introduced the use of multi-currency in January 2009.
Mutambara said however if elections were to be held there was no guarantee that whoever wins the polls will continue on the same path.
“That is the uncertainty that as a country we have to address if we are to attract investment,” he said.
The decision to “dollarize” the country’s economy, one of the first acts of the inclusive government has brought stability and stemmed inflation.
Finance minister Tendai Biti in August last year said the existing multiple currency regime will continue until 2012 when it is likely to be replaced by a single currency for the Southern Africa Development Community.
Biti told a meeting of the Institute of Chartered Accountants of Zimbabwe in the resort town of Victoria Falls that it was likely the Zimbabwe dollar would not be brought back into circulation.
“We have said the currency regime will only be looked into after 2012,” said Biti.
“The debate is then what happens after 2012. It will depend more on regional integration as you know that respective states are working towards integration and the possibility of using a single currency,” he said then.
