Zimbabwe should create super demand for its local currency, central bank governor says

Zimbabwe should create super demand for its local currency to ensure that the economy sustains itself, Reserve Bank of Zimbabwe governor John Mangudya told parliamentarians yesterday.

In his presentation at the pre-budget seminar being held at the new parliament building in Mt Hampden, Mangudya said the super demand will be achieved by compelling all sectors of the economy to settle part of their tax obligations in local currency with no exemptions.

The requirement to pay taxes in Zimbabwe dollar increases its role as a store of value and as a medium of exchange, he said. 

Mangudya welcomed the government’s decision to extend the use of multiple currencies to 2030 saying this provides policy consistency.

He told parliamentarians that the central bank was finalising and will publish a de-dollarization roadmap to provide forward guidance to economic agents and markets to enhance certainty and predictability in domestic transactions.

It will also align the foreign currency retention policy to the de-dollarization roadmap.

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