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Why Chinamasa is not bringing back the Zimdollar

Finance Minister Patrick Chinamasa said yesterday the multiple currency system was there to stay in Zimbabwe. He said the government could not bring back the Zimbabwe dollar because the conditions were not yet right.

According to a statement availed on NewZimbabwe.Com Chinamasa said the Zimbabwe dollar would only return when there is: sustainable economic growth; a sustainable current account position; industry competitiveness; sufficient international reserves without which the local currency will be under immense pressure; and restoration of confidence in the banking system and economy.

"Given the current state of the economy where real sector activities remain depressed, industry remains uncompetitive and the balance of payments situation remains acute, it is ill-advised to re-introduce the Zimbabwe dollar. Government is committed to ensuring policy consistency and predictability in order to restore confidence and stimulate economic activity. It is in this spirit that government would want to reiterate that the multi-currency is here to stay," he said.

The Zimbabwe dollar was phased out in 2009.

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This post was last modified on August 9, 2014 7:59 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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