ECONOMIC Planning and Investment Promotion minister Tapiwa Mashakada says government has no immediate plans of introducing the local currency until local production rises to sustainable levels.
Report by Victoria Mtomba
Responding to concerns raised by delegates at a two-day conference in Johannesburg last week, Mashakada said the deficit between imports and exports at $4 billion was unsustainable.
“We cannot bring back the local currency. We will continue using the multi-currency regime,” he said.
Zimbabwe introduced the multicurrency in 2009 when the inclusive government was formed. The local currency had become useless due to inflation.
MMC Capital executive director Itayi Chirume said the introduction of the local currency would “cause trauma” to some people.
He said history has shown that countries that adopt a different set of currency were likely to continue using it.
“We foresee a situation where even if we bring production back to previous levels, we will still continue to use the multi-currency,” he said.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Chirume cited countries such as Pama and El Salvador that adopted the multi-currency years back were still using the United States dollar.
Meanwhile, South Africa’s deputy minister of Trade and Industry Elizabeth Tabethe said her country remained committed to extending the R2 billion support it pledged to Zimbabwe at the inception of the inclusive government in 2009. The money was pledged by South Africa to Zimbabwe as assistance to the country to aid in its economic recovery efforts.
Speaking at a two-day investment conference held last week in Johannesburg, Tabethe said the country was still committed to offering assistance to Zimbabwe.
“We are still committed and we are talking to treasury and we hope that it will be sorted,” Tabethe said.
Botswana also committed P500million as lines of credit to Zimbabwe, but the funds were yet to be received by the Southern African country. She said Zimbabwe had vast opportunities and the interaction between the two countries was likely to bring about further trade and partnerships.
“We believe we can balance the trade between the two countries. We are getting there, do not despair.”
Last year in September a delegation from the Ministry of Finance met South Africa Finance minister Gordhan Pravin to discuss the disbursement of funds.
“In March this year the Minister of Finance (Tendai Biti) wrote a letter to Gordhan with regards to the funds and they are still considering it,” Mashakada said.
