Zim business urges use of rand as primary currency

The Confederation of Zimbabwe Industries, the country’s largest business lobby group, said the government should adopt the South African rand as its “reference currency” instead of the United States dollar.

Bloomberg

While the country’s unique “multi-currency system” should be maintained, all financial reporting should be done in rand, the confederation said in a statement handed to journalists in the capital, Harare, on November 4 before national budget negotiations this week.

South Africa is Zimbabwe’s neighbour and biggest trading partner.

“We suggest the Minister of Finance starts presenting his budget in rand instead of dollars,” the group said, citing proposals it will present to the Finance ministry.

Zimbabwe abandoned its own currency in 2009 to end hyperinflation and uses mainly dollars, with rands, euros, pounds and several other currencies also accepted as legal tender.

A shortage of foreign exchange after a collapse in exports has caused a liquidity crisis that has forced the government to delay worker payments.

Last week, President Robert Mugabe authorised the introduction of the $200 million-backed bond notes to ease a shortage of the US currency.

“With the acute liquidity crisis of cash dollars, the rand is becoming more attractive for business,” Alex Vines, head of the Africa Program at London-based Chatham House research group, said in an interview in Johannesburg on November 4.

“Business has already been asking for it and with the increased externalisation of dollars, this will grow.”
Finance minister Patrick Chinamasa will present the country’s 2017 National Budget in late November or early December, the ministry’s secretary, Willard Manungo, said last week.

In an interview with Zimbabwe’s State media, South African Trade and Industry minister Rob Davies said his country was unlikely to lobby for Zimbabwe to join a rand monetary union.


“It’s not anything that we, particularly as the government of South Africa, are pushing for,” Davies said.
“It’s a sovereign decision for the government of Zimbabwe.”

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12 Comments

  1. yes going the rand way would be better for the country,even the impending bond notes could be pegged 1:1 to the rand.we can use the rand without joining the so called rmu.a large percentage of zimbabweans are working in SA so why not.mangudya should tell the nation exactly why he is refusing the use of the rand.with the bond pegged at 1:1 with the dollar it would be easy for them to replace all the usd in the country with bond notes.

    1. and by adopting the rand, corruption will be managed easily,

    2. dont think south africa will allow the bond to be 1:1 with the rand if Zim is not a part of the RMU, thats a condition.

  2. South Africa will not allow greedy thieving corrupt Zimbabwe to use its currency, for the simple reason that they would have to print more rand money and thereby increase inflation in South Africa, and the other reason is that South Africa (Zuma & Gupta) is totally consumed with stealing their own money – they don’t want any competition! Is our ZNCC boss/partners really that stupid??

  3. Pliz let’s try the rand bond vakomana nooo!!!

  4. so when is the rand coming

  5. kkkkkk homo erectus uri homo chairo… u proved kusaziva chaiko

  6. Oh! my God. I do not know how people can be told what the actual situation is like. ZANU PF thugs are not interested in a currency which they cannot print. They want a pseudo currency like the bond note, which they can print without restraint, so that they can pay back the US$ or Rands, which these thugs raided from ordinary depositors accounts. It is not an issue of either US$ or Rand, it is an issue of pseudo currency which can be printed by ZANU PF thugs to wipe off innocent citizens’ earnings. It is utter naive for the CZI to think that ZANU PF thugs do not know about the Rand, remember they even at one time talked about Yuan. They know very well that their pyramid scheme anchored on treasury bills has collapsed, and banks are exposed big time, as depositors can still demand their money from the banks. This is the reason why you hear banks supporting the bond note, as this will enable ZANU PF thugs and banks and to transfer the risks from banks to depositors.

    1. wareva zvokwadi. hameno kuti akadii mazivanhu aya asina tsitsi neverudzi rwavo asi chandoziva kudenga kuna Mwari one daty we will rejoice.

  7. At least Zimbabweans will have a better Christmas whether rand or bond it’s better than nothing

  8. Remember USD is not for the Povo, according to ED. Harisi rekutengesa matohwe. Mari inotenga matohwe haisi mari.

  9. Its total madness that the government and its so called local advisers would seat down and approve the use of bond notes as an alternative to the challenges affecting this country. The bonds notes will only work on paper but practically the economy will be further dragged to an abyss and the government will still blame the sanctions

  10. from a development point of view this idea z good fo the country

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