'No money to monetise Zim dollar'

HARARE - Patrick Chinamasa, the Finance minister, yesterday said government was not yet ready to compensate depositors who lost their money held  in banks during the  change-over from local to the multiple currency system in 2009.

Chinamasa told the parliamentary portfolio committee on Finance that he was yet to receive a correct  formula on how he could compensate the depositors.

The committee, chaired by Zanu PF MP David Chapfika, had asked Chinamasa whether there was any progress on the demonetisation.

“I am inviting MPs to come up with the solution and as of today, nobody has offered me the solution on demonetisation,” Chinamasa said.

“It is a problem we are having and we are seized with as government and we cannot wish it away, because people want their money but at the moment we are not able to act on it.”

Zimbabwe abandoned its local currency in 2009 in favour of multiple foreign currencies, including the US dollar and South African rand, to help contain hyper-inflation.

A committee comprising officials from government and the Bankers’ Association of Zimbabwe was set up to work on the requisite details and modalities to operationalise the process.

Initial projections said funds for the demonetisation programme were estimated at $6 million.

The demonetisation of the Zimbabwe dollar effectively ended its role as a unit of account, medium of exchange and store of value and reduced the country’s currency regime to a dual currency system anchored on the South African rand and the United States dollar.

Chinamasa said the US dollar has been undervalued.“We have undervalued the US currency,” Chinamasa said. “For example, $1 buys four bottles of Coca-Cola in the USA but here we can only buy two bottles.  This is the undervaluing that  has caused  price distortions in the economy.”

Comments (14)

When Mr Tendai Biti, then Finance Minister said Government had no money, that it could not compensate the lost Zim dollars,that in this country the US Dollar was being seriously undervalued, and that in a correct setup the salaries being earned by most, were not very bad, but needed tactical and gradual improvement, the same Honorable P Chinamasa castigated Mr Biti, to the extent of inciting war vets to demonstrate against Mr Biti. Mr Biti stood by his position and said there was no money. He however did not fail to pay his dues. After being elected, the President promised better salaries than those offered by Mr Biti. One full year down the line, nothing meaningful has been done to the salaries of the civil servants. We all know that all they(Mr Chinamasa and Mr Mugabe) were doing was just grandstanding. However the reality of the matter is very clear. They have no solutions and they need help. Unfortunately they wont admit it as usual. They are always "correct" and as usual they'll blame everything and everyone else but themselves.

mosquito - 22 July 2014

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adopt-a-rhino - 22 July 2014

Really adopt-a-rhino? We're grappling with unemployment and street kids and you're asking me to adopt a wild animal? Lol I mean no offence I guess we're different people and we have different problems. That's the beauty of life I suppose (our differences)

Marshall - 22 July 2014

Mugabe&Chinamasa are a deadly combination with their very old politics.There will never be any meaningful contribution to this country by the two fatal men.They will never stop politicking to their ZANU PF gullible followers.

MANATSAMUKANWA - 22 July 2014

Thank you Marshal, how can we adopt a rhino when we are seized with a countless problems? Whats' so noble about adopting a rhino? Why don't these people adopt the street kids?

Kuda Muchena - 22 July 2014

Imire game park are taking care of orphaned rhinos. A consequence of poaching. Marshal if you to understand that our rhinos are becoming extinct by the day you would understand and understand nature the way that some of us do you would really support this cause. We are really not different but you can not ignore this disaster just because there is another disaster , after all it goes to the same root cause-humans. Reilly my friend keep up the good work. I will split my dollar between Marshal's street kid and the orphaned rhino.

naturelover - 22 July 2014

Kuda Muchena leave the rhinos alone. Unlike us they did not cause the problem.

chipembere - 22 July 2014

Zvinoda ivo vachitaura, heya unotoziva hako kuti the $ is undervalued ukagoitei. anyway what more do we expect from a country led buy machembere.

Hazvie - 22 July 2014

My very simple advice to ordinary Zimbabweans is that "Get on with your lives. What you lost will never be recovered. Its gone. Finished." I would also advise Uncle Pat not to mention this business any more. Let sleeping dogs lie. Don't rub salt into a fresh wound!

Johno - 22 July 2014

we dont v to adopt rhinos guys, todzipei isu tine zhara

fary - 23 July 2014

Tine Mishonga yechivanhu inowedzera nguva pabonde kuti irebe, inokudza nhengo dzana baba, inosimbisa musana, inopedza zvirwere zvepabonde, inorapa asima, zvirwere zveshuga uye newekuuchika unoita kuti pamuviri pabate. fonai pa 0737286007.All herbs does not have side effects and comes from Malawi. Free deliveries in Harare and outside we can send through swift

CHIREMBA - 23 July 2014

Mr. Biti was shouted at when he was finance minister just to embarrass MT who had appointed him but he was telling the truth about the economic situation in the country.Yes Mr. Biti contineus to know the very cause of our suffering although he has decided to go his on way.Red will always be Red & Orange will always be Orange.

MURAMBADORO - 23 July 2014

Zanu pf sufferes from UNMANAGEABLE amounts of arrogance coupled with A huge ego which need continuous massaging even at the expense of 13 mill pple. They simply dont give a damn! Thats what they and who they are! They knew all these problems and even lied to the electorate for the sake of power. They cant solve a thing in this country, but are too arrogant to call for help. GNU yaishanda wani. What has now gone wrong?

Tongogara - 23 July 2014

let it continue until we all know what to do. Hazvisati zvanyanyaba, zvichati zvonyanyauye zvorwadza ndoopatinoziva zvokuiita isu vana vevhu.

Titus - 23 July 2014

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