U.S. dollar will not be in use after new currency comes in: President Mnangagwa
Speaking during a live radio show hosted by Capitalk 100.4 FM, President Emmerson Mnangagwa warned those withdrawing foreign currencies from circulation risk losing its value since the new currency to be introduced will be used alone in Zimbabwe.
One listener asked how the new currency would be sustained when there is no production. The president said that he would not be cornered into revealing the stages that are to be followed until the local currency is introduced before year end.
“Every country must have its own currency. Each country names its currency. Zimbabwe must reach that position where it has its own currency. So far the RTGS$ is the strongest currency in the SADC region.
“We will have a new currency that will be our own Zimbabwe currency. It will be the only working currency meaning all foreign currency that comes in from then on will go to the bank to be changed into Zimbabwe currency
“We need to make a legal framework that makes the Zimbabwean dollar legal tender,” he said.
He, however, said that there are fundamentals that are to be met first before the currency is introduced. He said that these include improving production, minimising corruption and instilling confidence in the general populace. He assured further called upon the members of the public to withdraw from the panic mode as all fundamentals will be put in place before the new currency is introduced.
“To rise from the ashes of collapsed currency, and a collapsed economy, we must walk together, but also we must make essential reforms.”
Another listener asked why Zimbabwe would not just adopt the Rand as the main currency, President Mnangagwa took the listener back to 2008 where the multicurrency system was proposed.
He said that he was part of the 5 member delegation that was sent to South Africa to ask for South Africa government authority to use the Rand. He said that the prerequisites were not feasible given the Zimbabwean circumstances.
“We can’t introduce a new currency before we get all things right. We must be having production for exports, we must deal with corruption, and the mindsets of our people must be proud to have our own currency and not think we are better with the other people’s currencies.
“South Africa gave us a checklist before we could use their rand. Some of the things included our GDP, & size of the economy. Zimbabwe could not match those demands, hence we couldn’t join the Rand Monetary Union,” he said.
Resultantly, they settled with just creating legal frameworks which would allow multi currencies to be used as legal tender. He said the Rand is still in use under that arrangement.