Zim dollar return: RBZ arm speaks

HARARE - Reserve Bank of Zimbabwe subsidiary, Fidelity Printers Limited (Fidelity), says they have not yet been instructed to print the Zimbabwean dollar, amid reports that the central bank’s printing company had recalled all contract workers.

This has led to speculation that the Zimbabwe dollar could bounce back as the liquidity crunch continues to hit the nation.

“From time to time when the need has arisen, the company has over the years relied on contract staff, including former employees and will continue to do so,” said Terence Machawira, Fidelity’s legal counsel, in written responses to the Daily News.

“The issue of staff recalls in preparation for the resumption of currency printing that you have alluded to is news to us,” he said, adding that the resumption of use of local currency was the prerogative of government.

“As a high security printing company, we remain prepared and continue to seek currency printing business both locally and globally,” he said.

The southern African country ditched its local currency in 2009, after it had been rendered useless by hyperinflation which peaked at 231 million percent, in favour of a basket of multiple currencies that includes the United States dollar, South African rand and the Botswana pula among others.

Talk of Zimbabwean dollar return evokes sad memories for the majority of people in the country who lost their life earnings with the introduction of the multiple currency system.

At the height of the hyperinflation, the country became almost idle as industries closed down, while multi-national companies relocated to neighbouring countries and most local businesses were just operating at a loss.

The unemployment rate rose to over 80 percent and over three million people reluctantly left the country for menial jobs in neighbouring countries.

Although the new government has repeatedly tried to calm the market by dismissing rumours of an imminent return of the local currency, speculation has been rife that the Zanu PF-led government might prematurely re-introduce the discarded currency.

Speaking at the pre-national budget conference in Victoria Falls recently, Finance Minister  Patrick Chinamasa ruled out the return of the Zimbabwean dollar and said he did not want to hear any more questions about the local currency.

“The multi-currency system will remain for the next five years,” Chinamasa said.

“I do not want to continue being asked that question. It is going to be a multi-currency regime.
“The multi-currency system will be the form and basis of our programmes for the next five years.  Let that be clear to everybody. We might actually add more currencies to the cocktail of the currencies we are using now, depending on how that currency will be benefiting the country.”

However, the former liberation movement indicated in its manifesto that it was keen on bringing back the currency.

Economic analysts are of the view that the economy will not recover under the current multi-currency system, as the US dollar has proved elusive for most Zimbabweans.

However others insist that the immediate return of the Zimbabwean dollar will be disastrous given the prevailing environment.

The Zimbabwe National Chamber of Commerce (ZNCC) recently called on Chinamasa to unambiguously assure the nation that there will be no immediate return to the Zimbabwe dollar or resorting to any local currency as a precondition for efforts to boost waning investor confidence.

In its submissions towards the 2014 national budget, the industrial body said issues relating to currency reforms were very crucial in determining the nature, tenor and quantum of foreign investments and foreign lines of credit the country could lure.

“As part of the all-important confidence building process, we urge you honourable minister to be very clear with regards to government’s view of the multiple currency regime and categorically state that there will be no immediate return of the local currency,” ZNCC said in the statement.

“In addition to that, we implore that you, honourable minister, spell out the pre-conditions necessary for the re-introduction of the local currency. This is important in bringing certainty around possibilities on immediate currency reform.”

In order to dispel any such speculation on the possible near-future re-introduction of the local currency in the minds of the general public and investing community, ZNCC said, Chinamasa should state the model on which a local currency would be introduced.

Comments (21)

what would happen if fidelity printed American dollars? say they managed to perfect them. does America have copyright of the design? could they sue Zimbabwe? or maybe they d just drone the fidelity printers building

simba - 6 December 2013

It is not possible to bring back the zim dollar back at this stage. The zim dollar is a none starter. Do not ask me why, people lost everything they had served.

Solomon Zulu - 6 December 2013

Tongai mhani imi tione!! suffering hasnt started yet for us , whether you are zani, MDC, zapu or whatever. Tichamama chete till Morgen comes back. Morgen IS MORE, MORE!

mhashu - 7 December 2013

Simba... kwana...

Museki - 7 December 2013

Mhashu, fambirana nenguva

MUSEKI - 7 December 2013

you can rig the election but,not the economy.chimboitai tione

foxie - 7 December 2013

Ngaridzoke tipise futi. Madegree takaturika saka tingatowana zvekuita isu marovha.

chabvondoka - 7 December 2013

Iwe John Kachembere unogoti "former liberation movement" kurva ZanuPF iyo ZanuPF yacho wakaudzwa nani kuti ndiyo yakaita "liberate" nyika? Urikuitira mangwana kan wave kuzoda basa ku Herald. Writing nonsense. Zanu or Zapu never liberated any country on earth.

Musona - 7 December 2013

Mukaunza zimdollar hatidzoke ko,mbavha vanhu vasinganyare. vanhu vatambura ,munoda kuramba muchivashungurudza.Dzimba munovapwanyira,Gono akapamba mari yevanhu,kaUS$ kouyawo kuti zvive nani,moda kuti vanhu vakashaye.What kind of people are you.Chinamasa ndosaka wakamamiswa naBennet,Dofo remunhu. I am just tired of that nonsense gvt. GO and ROT in HELL u Chinamasa,Mnangagwa,Mpofu,Chombo,Moyo nababa Venyu Kule.

Retired - 7 December 2013

http://cashjite.com/index.php?share=11568

jones2011 - 7 December 2013

@mhashu ndimi muchangokaura netongai tione while the country z being ruled and life z going on well for us. wake up homie n b able to produce results using the availables.

alfronimbostratus - 8 December 2013

chabvondoka kana vapisa unosvikepi nazvo. Ndosaka uri kuramba uri rovha hauna brain. Dai uchitochemera empowerment taiti apo wafungawo.

muchadura - 8 December 2013

pasi ne zanu@# dei MWARI akatora b@b kwete mandela

grozny chenkov - 9 December 2013

no one will be told when the zim dollar will come. it is well kept secret which is only known by a few. if you all knew when the zim dollar will come you will withdraw your american dollars which the thieves want so for themselves, so they will take them and suddenly give you the zim dollars. how does a minister of finance fail to come up with a budget. why not budget with what, just like what biti used to do. he wanted 10 billion but never got that, so he worked on 3.8 billion that he got and we all understood him although zanu made us to successfully fight him out. you cant use more that what you have. so our minister is still waiting for the zanu conference to give him a go ahead to introduce the zim dolla. if God does not intervine during the coming zanu conference we are in for a high jump.

sammy - 9 December 2013

dont we have True Prophets in Zimbabwe.Is there no BALM in GILEAD? so why are people not HEALED? because they dont know that it times of TROUBLE, they should consult Prophets on what to do!!! Viva True Prophets!!!!!!!!!!!!

Simple Cisse - 9 December 2013

..chikoti...

Wasu pa Watsomba - 10 December 2013

KKKKKKK .RIDZOSEI TIONE ZIM DOLLAR RACHO MUONE KANA PANE ANE HANYA NAZVO . MATOTO EVANHU

jende kufa - 11 December 2013

whichever wway

jerenyenje - 11 December 2013

chete mazim takapusa tine discipline

jokonia - 12 December 2013

guys check this link out. http://ThePayBird.com/?id=join

make money - 13 December 2013

From the many comments above,a lot more people misunderstand the concept of money.Zim dollar or US or Rand, the concept of money 'is the beilef and trust' that citizens give to anything accepted as legal tender in a country.Judging from the many posted comments,whereas the confidence is aparently missing, someone somewhere will inevitably be forced to take 'extraordinary measures for extraordinary circumstances' that include trying to introduce the Zim dollar.Give it another six months to a year,we would have exported all the foreign currency through our strong propensity to eat what we donot produce and obviously extraordinary options cannot be ruled out.

chokwadi chokwadi - 13 December 2013

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