ZiG is my currency, your currency, everybody’s currency-FinMin

Zimbabwe Finance Minister Mthuli Ncube told legislators yesterday that the newly introduced Zimbabwe Gold currency was everybody’s currency, so Zimbabweans should be proud of it.

Responding to questions about what the government was doing to ensure that ZiG does not go the same way other local currencies introduced by the government have gone- down the drain- Ncube said: “I would like to urge Hon. Mushoriwa to be confident about ZiG and use it all the time.  It is his currency; it is my currency and it is everybody’s currency.  We should all be proud of it.  After all, a country derives its social pride from the flag, national anthem and also from its currency.”
Ncube said the government would introduce a number of fiscal measures to boost the use of the local currency but he refused to disclose them except that one of them would be that companies should pay half of their taxes in the local currency.  

“.. in terms of the complementary fiscal measures – what measures shall we announce to complement the Monetary Policy Statement. We have a few, but I should not announce them here in Parliament. I will just give an indication. What we have announced for sure is that 50% of the company taxes, corporate taxes will be in ZiG to increase the demand for our currency,” Ncube said. 

“We will be very specific when we make the announcement as to which fees and which taxes will be paid in ZiG beyond the request that corporates pay in domestic currency. We will make an announcement in the fullness of time. I will beg for his indulgence on this one and not to make it in Parliament today but we already have an idea.”

Full Q & A:

HON. BAJILA: Thank you Madam Speaker.  Thank you Minister for the statement.  The statement from the Central Bank indicated that these balances will begin to work from 30th April.  Civil servants are expecting their salaries from 18th April, how will civil servants get their monies between that period of 18th to 30th of April?  In what current will it be?

HON. DR. MUTODI: I have three or so questions.  Hon. Minister, we understand that where currency is backed by gold or any commodity, there may be external shocks.  How do you intend to deal with external shocks?  Also, you mentioned that banks must apply the know your customer to depositors with 100 000 cash, but look, 100 000 cash is simply $3. 00 if it is converted to USD.  Why doing this Hon. Minister?  My last question is that how is the Central Bank going to ensure that lending rates continue to be at par with inflation, given that if they are below inflation, they will cause speculative borrowings.

My last question is that how is the Central Bank going to ensure that lending rates continue to be at par with inflation, given that if they are below inflation, they will cause speculative borrowing.  Thank you, Madam Speaker.

HON. CHIDUWA:  Thank you Madam Speaker.  Hon. Speaker, the Minister said we are going to have complementary fiscal policy measures.  I would want to know some of the complementary fiscal policy measures that are going to complement the Monetary Policy Statement that was announced by the Governor.  The last one is that the willing buyer-willing seller ensures a market-based price discovery for the ZiG.  What is Government policy regarding the Zimbabwe Stock Exchange counters that were suspended due to implied exchange rate like Old Mutual and PPC?   I am asking this because we are really concerned with the way the Zimbabwe Stock Exchange is performing.  I submit.

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