Mnangagwa’s recipe for ending Zimbabwe’s cash crisis

Zimbabwe can easily end the present cash crisis the country is experiencing by introducing bond notes because they will be used in the country only and cannot be exported, Vice-President Emmerson Mnangagwa told Parliament yesterday.

Responding to a question by Paurina Mpariwa of the Movement for Democratic Change on how the government was going to tackle the cash crisis in the country, Mnangagwa said there were only four ways to raise money.

• “The first one is that we have people who would have exported their goods and then receive payments, that is when we can get our money. 
• “The second way of accessing cash is through Foreign Direct Investment, where we have foreigners coming in to establish businesses in Zimbabwe and in that way we can have money. 
• “The third aspect is that we have friends and relatives who are in the diaspora who will think of their homes and know that home is best and hence they send money, in that way Zimbabwe will be able to get money. 
• “The fourth aspect of getting money is that the Government should get lines of credit bilaterally or multilaterally.

“You cannot get money into the country through any other means besides these four stated means,” Mnangagwa said.

“Stemming from that, we have great thinkers who have suggested that as Zimbabwe, we should not use FDI to buy things like matohwe but to introduce a new monetary system such as the bond notes, which are supported by US$200 million, which will never be exported but used in the country only.  Therefore we will not run short of money.”

Continued next page

(814 VIEWS)