Special coins not linked to Zim dollar: Chinamasa

HARARE - The new special coins set to be introduced by the Reserve Bank of Zimbabwe (RBZ) are not linked to reintroduction of the Zimbabwe Dollar, Finance minister Patrick Chinamsa insists.

This comes amid rising suspicion that the coins are part of a scheme to return the local currency, abandoned in 2009 after ravaging hyperinflation.

But, Chinamasa said the coins – valued at par with the United States dollar – are meant to solve the problem of change in transacting.

“I am not a foolish minister, I do not make reckless decisions. I would be reckless to introduce the local currency at this juncture,” he said at a breakfast meeting in Harare this week.

“The small change introduction is in no way a subtle reintroduction of our currency,” he said, adding that the “plan will be backed by a $50 million facility to buttress the multi-currency regime”.

The coins will be imported from South Africa.

The Treasury chief noted that any currency needs an anchor in the form of production, “something Zimbabwe currently does not have, thus rendering it impractical” to reintroduce the infamous Zimbabwe dollar.

“Seriously, what is all this noise about these coins? They are simply meant for the convenience of consumers so that they do not eat sweets when they do not want to.”

“All we are saying is that sweet factories should be able to sell their own products without ridding on the change advantage,” he said.

He further stated that the move could possibly reduce commodity prices.

“Everything is pegged at a dollar consequently, so the availability of small change will give commodities their real value and protect the consumer form being overcharged,” said Chinamasa.

After ditching the Zimbabwe dollar, government adopted the multi-currency system – a basket of currencies dominated by the United States dollar and South African Rand.

Ecuador, another country that uses the greenback as its currency, has special coins, centavos, which have the same denomination and value as US coins.

Comments (10)

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GALLERYCARTRIDGES - 26 September 2014

We will not trust you Mr. Minister. When is industry coming back on line. These coins come at a huge cost to the tax payer. You are wasting your thinking on the wrong things. How are the coins linked to the US$ and made or manufactured by a company in RSA. Give us the denominations $1.00, 50c, 20c, 10c, 5c, 1c etc. I can't wait for the coins...collect as many and change them into real US$ hahahahah

Garikayi - 26 September 2014

This small coins idea seem daft to me. How is their value determined? If I have 100 coins with $1 value, I am as good as someone with 1 note of $100 value. What these small coins are is another currency being introduced, period.

Methinks - 26 September 2014

you are foolish and reckless machonyonyo. if not why then are you increasing taxes, toll gates and taxing airtime? unoda kuti titsvage nedare kunge mombe? if you are stupid and voluble, ... and clueless.

jj mugadzaweta - 27 September 2014

The business community will not accept these coins then we are in real trouble.Another foolish hair brained scheme.Like l have always said tired, old, wasted men.

Jackson Dube - 27 September 2014

Baccossi in another form. Gono advising.

ISIS in Zimbabwe - 27 September 2014

matsitsotsi aya atanga next time they will offload those stupid coins to us the general public while they remain with the Usa manje tazviona

idako - 27 September 2014

Here are two scenarios; 1, the coins will be imnported from SA at what cost? Why not just bring R0.50c and R1.00 and save yourselves the headache. 2, those that are well connected will exchange millions of these 'no-name' coins for real dollars and dissapear. Clever hey, Min Chinamasa. I will not take the coins, thank you....

Jamengweni Godonga - 28 September 2014

Why are we wasting time with the coin issue? What does it benefit? Are we not strapped for cash as a country for us to waste more cash getting coins minted in RSA. This is what makes me suspect that some sort of hidden agenda is at play here. Shouldn't Chinamasa and his cdes focus on creating employement. What ever happened to the MANY diamonds, Zimbabwe should have been the new Dubai, completely developed

MUKOMA WAZID - 6 October 2014

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