BUSINESS

New Zimbabwe currency this week: Tendai Biti

FORMER Minister for Finance, Tendai Biti, has sensationally claimed he’s reliably informed that the government of Zimbabwe is set to introduce a new currency this week.

Biti, who is also the MDC Alliance national vice-chairperson wrote on Twitter that such a move will be pure insanity.

Said Biti: “The regime will this week introduce a new Zimbabwe currency not backed by any #reserves & without the context of structural reforms which a prerequisite of currency reform . That move is pure undiluted #insanity . An unbanked currency is just the #bond note by another name.

“There is no country in the world that has involuntarily dollarized that has ever succeeded in de -dollarizing. Zim will not be the 1st .Whilst a currency is about fundamentals ,ultimately the most important fundamental is confidence There is absolutely no trust in this regime.

“Considering the #harm and #damage inflicted on this economy by its Central Bank over the years to now , the question to be posed is, does Zimbabwe really need a Central Bank? In my submission, it can and will do without one.”

Biti’s claims that a new currency shall be introduced this week, however, have not been confirmed by the government.

It remains to be seen if the government will comment on those sensational claims.

In January, Finance and Economic Development Minister Mthuli Ncube said a new currency was coming within the next twelve months, as a shortage of U.S. dollars plunges the financial system into disarray, forcing businesses to close and threatening unrest.

Zimbabwe abandoned its own hyperinflation-wrecked currency in 2009 at the height of an economic recession, adopting the greenback and other currencies including sterling and the South African rand.

But without enough hard currency to back up the $10 billion of electronic funds trapped in local bank accounts, businesses and civil servants are demanding payment in cash which can be deposited and used to make payments both inside and outside the country.

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