Multi-currency regime makes Zim more attractive: CZI

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THE Confederation of Zimbabwe Industries (CZI) is advocating for the continued use of multi-currency as that was making the country more attractive.

BY MTHANDAZO NYONI

The multi-currency regime was introduced in 2009 and is credited with stemming hyperinflation, which made the local currency worthless. Zimbabwe uses a basket of currencies that include the South African rand, Botswana pula, British pound and United States dollar.

WORLD CURRENCY NOTES
WORLD CURRENCY NOTES

In a statement on its website, CZI said there have been concerns from different circles over the continued use of multi-currency with some people advocating for Zimbabwe to join the rand union with some experts calling for a local currency.

“CZI believes in the continued use of the multi-currency, despite the challenges currently posed by the depreciation of the South Africa rand and the Zambian kwacha,” CZI said.

“Other experts have called for an internal devaluation with lessons to be borrowed from Latvia and Lithuania.”

CZI said it was against this background, that it invited its members and non-members to an internal devaluation workshop to be held in Harare on December 9, 2015 at the Meikles Hotel.

The use of the multi-currency regime has created headaches for the economy, with monetary authorities moaning over the loss of its ability to manage the exchange rate for export competitiveness purposes.

In his mid-term monetary policy statement, Reserve Bank of Zimbabwe governor, John Mangudya, said the country should undertake fiscal and internal devaluation to be competitive. This entails putting duty on imported goods that can be obtained locally and reducing the cost of doing business.