Zim warns firms on multi-currency system

HARARE - Zimbabwe has urged firms to capitalise on the multi-currency system by boosting exports, warning that the scheme will eventually be abolished.

Mines minister Walter Chidakwa said the system – dominated by the United States dollar – will not stay forever and “there is need to make alternative plans”.

In 2009, Zimbabwe abandoned its currency, ravaged by galloping inflation topping 231 million percent, to adopt various currencies including the South African Rand, Botswana Pula and Euro among others.

“No one knows for sure when the multi-currency system will be scrapped, but the few Zimbabwean companies still manufacturing need to start increasing their export volumes,” Chidakwa told a Special Economic Zones workshop recently.

“Increasing export levels will provide a cushion when the multi-currency system is abolished. A rainy day is definitely coming and,” said Chidhakwa.

Recently, the Reserve Bank of Zimbabwe (RBZ) widened the multi-currency basket to include four more foreign currencies.

Currencies of China, India, Japan and Australia were added.

Meanwhile, Finance minister Patrick Chinamasa last year said Zimbabwe will continue using the multi-currency system for the next five years.

According to Zimbabwe Statistics agency, the country’s trade deficit 2013 widened to $3,89 billion in the year to November 2013.

During the period imports stood at $7,15 billion dominated by fuel, fertilizers, second-hand car imports and textiles.

Exports, mainly minerals and tobacco, were $3,25 billion.

Comments (6)

ma1 aya ouyawee

chabvonga - 24 April 2014

The problem we have is of one Minister saying one thing and the other saying something else totally different and yet they sit in the same cabinet meetings. So is Mr. Chidhakwa saying we should prepare for worse days to be brought by our own currency? Why do you enjoy the suffering of your masses?

Dr Know - 24 April 2014

Mr Chidhakwa is subtly telling the nation that the Zim Dollar is on its way back soon. There is no way out for this Govt except to bring back the Zim Dollar, both ministers and the cabinet know that. We just have to be prepared to suffer the hardships of pre 2009. I just do not see how this Govt is going to continue to pay civil servants in US$ when the trade deficit is as it is, it's impossible. So yes minister Chidhakwa, thank you for the heads up, we do really need to brace ourselves for the inevitable return of the Zim Dollar.

Ethan - 24 April 2014

Bringing back the local currency is not any kind of way out. Rather it is an act of closing the last remaining vent which has been giving the fainted body little air and some hope for resuscitation. In fact its an act of economic and political suicide. Unfortunately to the lame and timid ZANUPF guys, it is better for them to go the ZIM dollar way, print bond paper and call it money, and then boast that all is well. Sad as it may seem, it is time we the people started preparing for this valueless currency and the suffering associated with it. Our leaders don't care.

mosquito - 25 April 2014

apa pachaita ma1

mabs - 26 April 2014

i) pliz no zim currency, i dont want to sleep in bank queues again because of daily limits to withdrawals. ii) in the last session 2008, all my working savings in the bank i lost, only to start working in 2009 getting US$100 and im 56yrs - i have worked for free in zim.

hooter - 9 May 2014

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