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Dollarisation Was Our Greatest Mistake, Says Mangudya

Dollarisation Was Our Greatest Mistake, Says Mangudya

Reserve Bank of Zimbabwe (RBZ) Governor, John Mangudya, has said Zimbabwe should never have completely dollarised its economy in 2009 as this is now making it difficult for ordinary people to accept their own local currency.

The Zimbabwe dollar was reintroduced in 2019 but ordinary people have no confidence in it and prefer using the US dollar as the store of value.

Mangudya said the Zimdollar should have been given a chance to regain its value alongside other currencies, instead of completely dumping it when the multi-currency system was introduced in 2009.

Speaking during a public lecture at Manicaland State University of Applied Sciences last Friday, Mangudya said:

In Zimbabwe, we made one fundamental mistake of throwing away our currency in 2009. We were supposed to keep it and allow it to limp alongside other currencies.

We should not have locked it out through a Statutory Instrument, saying don’t come back again, don’t resurrect. That is where we made a mistake.

At one time the metical was useless in Mozambique, but they never threw it away. In Russia and Zambia, the same happened and when their economies began to pick up, their currencies regained value, but here we put it six feet under and therefore it is now very difficult for people to accept the local currency.

The irony in Zimbabwe is that big companies were the first to call for the use of local currency because they know that will make them more competitive on the global market, but the ordinary men and women on the streets are clamouring for a re-dollarisation of the economy.

Mangudya said the country will continue using the Zimdollar alongside other currencies until people had confidence in the local currency. He said:

Countries that would have completely dollarised cannot just wake up with a mono-currency, otherwise, their economies will collapse.

There is something called histolysis, meaning that people still want to hold on to the past.

We need to introduce a mono-currency gradually. We tried it in 2019 on June 24 and inflation spiked to 87 per cent.

People need to have more trust and confidence in the local currency. We will continue having a partially dollarised economy.

It should also be noted that there is no country without a parallel exchange rate.

However, this should be manageable, between 10 and 20 per cent of the actual rate.

Mangudya said for the country to achieve economic stability, there is a need to produce more and more thereby reducing the import bill.

More: The Manica Post


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37 Comments

Vagari vemuno 1 month ago

Siya vanogona vamhanye masinhi ayo....... Vane ma degree echokwadi


GVT 1 month ago

in soccer they fire the coach if the team is underperforming


Senior Citizen 1 month ago

Nhasi mukuda bond mangwana hamuchade bond literally your word is bond until rakubvisa bond


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Sekuru Dhambi 1 month ago

Va Mangundya, to quote you, mati our dollar should have been given a chance to limp along with the others

Question: who bets on a limping horse?


thrasher 1 month ago

truth be told limping means it's temporary the same horse that's limping today might win next time

Mai Chisamba 1 month ago

vaombererei maoko VaMangudya ndomaonero avo asika ndine mubvunzo doctrate renyu makaitirep nhai vakuru webank hombe renyika


kezi 1 month ago

baba vangu Shumba murikuba USD mukuda kutiita zvima experiment zvenyu
taneta nenyaya idzi bvisai bond muone kuti tofa here


...... 1 month ago

ko kumboedza rand union


Dai ndakaziva 1 month ago

Don't politicize financial institutions ......we all know that real economics will take a process to support local currency. Iyi yenyu yekuti surrogate wat wtmat hazviko as long as you dnt address the source of the problem. Zim currency is weak, very and it will only take downfall of you and your zanu collegues. next zivai kwekuitra ma PhD enyu w economics anamangud....


Chawabvunza 1 month ago

If RBZ Governor knows where we made a mistake, he should then correct it. If he can not correct it, he should ship out. He should tell citizens the truth that he has failed to stemp out blackmarket which is interfering with interbank rate. The country would not have these problems if there was no blackmarket.

[ VOTE CCC FOR REAL CHANGE ].


cde chipopi 1 month ago

blue uri murukazi . vanhu vamama nekunyengerwa vakadzi vavo nema shefu nekuda kwekuti they are destitutes in their own homeland


Asalif 1 month ago

Mangudya the ball is in your court why not trouble yourself when you have the power to do anything , just scrap the USD in the country so that every transaction is done in local currency be it fuel, groceries, clothing, passports and declare it illegal transacting in foreign currency we will give you 2 months only


Maparamuro 1 month ago

There is no economy that can thrive solely on foreign currency. It's clear the problem is confidence in the system and that's what needs fixing. US$ is earned through exports of which Zim has very little. Even if we dollarise 100% we will still not be able to print the US$ and it will always be in short supply. We need to boost local production to reduce our imports and then our currency can gain some value


mutsa 1 month ago

confidence my a**. musafurire vanhu zvinhu zvakadhakwa. Burial societies using local currency suffered greatly in 2008 and 2018 and you expect them to have confidence zvimwe fungai musati manyora

🤷 1 month ago

AAAAAAH


Maparamuro 1 month ago

It's not the currency but the administration that people don't have confidence in. Change the admin and see what happens to that currency.


Imwe Mbeu 1 month ago

We will continue having a partially dollarised economy - John Mangudya

Insanity is doing the same thing over and over and expecting different results - Albert Einstein


John Chibadura 1 month ago

You keep voting for one party. Insanity?

Ghetto Yut 1 month ago

having you as Governor was our greatest mistake


Black label 1 month ago

your mistake iwe nani kkkkkkk unenhamo iwe

Mujibha 1 month ago

Desperate CCC has wake up from their delusional dreams to create fake @Blue🔵 lol. This is what happen when someone live rent free in your head.


Bonzo 1 month ago

Iwe Blue kwana iwe tush amwari rwenyu turi kungochera makomba pese pese munyika medu makatarisa nekudzinga hama dzedu munyika madzo machina zvimbwa sungata zvenyu mazanu mbavha dzevanhu


Mmm 1 month ago

😂 😂 😂 😂 😂 😂 😂 😂 😂 😂
😂 😂 😂 😂 😂 Really. You are a failure.... RESIGN.


Mutoriro Movement 1 month ago

You are not being truthful sir Mangundya. Didn't we accept the Zim dollar in 2018 when you said it was 1:1 with usd? Are you the 1 who then started skyrocketing the value of usd while demeaning our own currency? Why can't you accept that you have failed at RBZ, you can still go and be a lecturer at one of our local universities that to keep yourself at e failed RBZ.


CCC 1 month ago

wakamboti bond rakafoira ndosiya basa wani .ukuda humbowo hqakadii kuti bond raita fail.


Blue🔵 1 month ago

Iam praying for my supper


Ellie 1 month ago

Silly this pathetic 😂


DACOOL 1 month ago

Ur saying we should have continued using our local currency in 2009 lyk srcly ? A currency wch could have been now in the 16 digits form


thrasher 1 month ago

he is saying we should not have abandoned it completely

STALIN 1 month ago

Ko kungoti takundikana nhaiwe John ipayi vanozvigona
handiti mari makaba manadzo ibvayi pazvigaro ana jonhi


Mascherano 1 month ago

haafungi Mangudya


Blue 🔵 1 month ago

Ndatenda hangu Mr Mangudya. Zvino mu Pindula makazara fact intellects, hell bent on destroying the economy. Mirai muvaone ma saboteurs kana achinge asvika. Zvimapuppet zve CCC ne America zvine PSS


Peter 1 month ago

Iwewe urimha***ta chaiyo haufunge hauna brain

Dollarization was our greatest mistake, says Mangudya 1 month ago

Remember, it's not government that dollarized our economy, BUT the citizens of Zimbabwe refused the bearer cheques for the USD.

So this bond maybe rejected by the very citizens if they feel it's no longer relevant.

STALIN 1 month ago

Guys murume anozvti blue uyu is only lookin'
fo attention nda zvimwe zvaanotoura kaa chero benzi
rane makore richipenga harisvike ipapo

anyway guys lets all vote for CCC

Mnangangwa 1 month ago

Blue funga mhani Zanu pf i puppet yechina bhangu wee

Blue 🔵 1 month ago

Fake intellectuals


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