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Mangudya Speaks On Why Govt Won't Allow Full Dollarisation

Mangudya Speaks On Why Govt Won't Allow Full Dollarisation

Reserve Bank of Zimbabwe Governor, Dr John Mangudya says the country cannot afford to fully dollarise as the move will be detrimental to the socio-economic growth of the country.

While some quarters have been clamouring for full dollarisation of the economy to stabilise the economy, the RBZ has said 60 per cent of the inflationary pressures are imported, hence dollarisation is a recipe for economic stagnation.

ZBC News’ Wellington Makonese quotes Mangudya as saying:

The government has allowed for the use of foreign exchange alongside the local currency. The greatest challenge with full dollarisation is that we can’t have enough capacity to monetise all the bank balances for foreign exchange.

The greatest danger the economy would face is to be forced to mix virtual currency and foreign exchange and banks would need to separate the two currencies and trading would continue between the foreign exchange balances and the virtual forex balances. We need to love this country and not destroy the momentum and tame.

We have been there before in 2018. We will have parallel market of virtual money.

He added that behavioural issues have also contributed to macroeconomic instability.

Mangudya added that Zimbabwe has over US$2 billion to back the local currency, which means the economy can be stable. He added:

However, we see inflation continuing, which points to behavioural issues. We sympathise with the people for they have memories of 2009, but we cannot sacrifice growth for temporary stability.

Last month, the government put in place a raft of measures to stabilise the economy.

Some economists are sceptical that they will work and they urge the government to redollarise.

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Gafa 3 weeks ago

Inharo dzowaperegwa anongoti hazviiti hazviiti asi zvichiitika Zmdolla pfooo

Lelo 3 weeks ago

Ane njere ngaafunde, history repeats itself

King Leh 3 weeks ago

Zvandakanya nhasi ndozvidya mangwana semaheu

Laylow Word Plays 3 weeks ago

We've been sick since 2008 gore ra Gono riya......... Sick sick sick Gonorrhea

YELLOW CARD 3 weeks ago

Full dollarisation ,,, for price stability

Chimboti Pizza 2 weeks ago

@YELLOW CARD, handiti unoziva kuti tichine chikwereti chemabillions from dollarisation yakaitika muna2009. Dollarisation yakaitika chikwereti chenyika chinowedzera uye maUSD acho anozongoshota after a few years. Izvezv maOrganistion akawanda haatode kutikweretesa coz tagara tine chikwereti chakakurisa


,🤷 3 weeks ago

Zim is good in playing with words, but when it comes to implementing them for the good of all.
thus were we say DOLOLO.
bread now $950rtgs in some shops🤦,

Blue 💙 3 weeks ago

Zimbabwe will not fully dollarise bcz this regime gvt survive by printing its own money for their party's meetings and conference as well for paying its hooligans. Fully dollarise will starve by exposing this gvt bcz it can't print the Rands or USA.

Blue 💙 3 weeks ago

Whoever is using my alias is definitely not as smart. Just a dingus.

Machiavelli 3 weeks ago

@Blue 💙, Zimbabwe has fully polarised. Only that it HASN'T OFFICIALLY been announced. Dollarisation like the black market is not gauged by statements coming from hesi yaMangundya or Mtuzvi Ncube's office in Munhumutapa or Sweden. It is what is happening in the corridors business. Go to the market with you 5million RTGS to buy tomatoes and see vakadzi vemaTswanda kuti vanotambira mari yako here.

Are there any queues at the banks to withdraw RTGS? No. Why?
Because it is no in demand. Every day you hear ness of robberies- I still haven't heard where anybody who has bee robbed of RTGS.

What further evidence do you want of dollarisation of the economy?

seer 3 weeks ago

saka Mangundya ndiye atove government yacho ka.

Revenge 3 weeks ago

Some comments. Are they written under the influence of Mutoriro

zimdololo 3 weeks ago

zimdolla rinoshanda here outside zim, is it recognized even with our neighboring countries

magu 3 weeks ago

the guy is totally useless but kumba kwake hakuna bond ane yuwesi chete

Imwe Mbeu 3 weeks ago

You heard it guys. Unless the leadership or management is changed, that's their mission.

Tateguru 3 weeks ago

Hamheno but chingwa chaakuita US$1.20 kuzvima ZWL $500 ikoko uko

Imwe Mbeu 3 weeks ago

Vakawanda vedu tichatombo loser appetite 🤭

Jimmy *machende* 3 weeks ago

Zviroto zviroto

Jah🇿🇼Tsvarie-07 3 weeks ago

Then government should tell businesses to pay workers half US$ salaries and half Rtgs$ jus to make everyone survive while we wait for the day Mangudya will surrender, Rtgs$ and Z$ will take ages to be stable coz business lost their capital through bearers cheque...

dispenser 3 weeks ago

obvious mabasa anosiyana panenamwe anoitika nokuda kwe availability ye bond .ndosaka uchiona mamillion mumakona emastreet .Ma agents e corruption are rejoicing at the expense of masses suffering

Muridzi wepanmart 3 weeks ago

Bond rikatadza kushanda ndosiya basa

dispenser 3 weeks ago

ndati zvirinani kuwokera imbwa,madhongi, makudo, achinyengana pane kuterera zvakadaro

Chimboti Pizza 3 weeks ago

Kune varikurota Zimbabwe ichishandisa USD kanganwai zvenyu, Zimdombi is here to stay.

Chimboti Pizza 2 weeks ago

Ana @Leee nyangwe mukada kutaura, taurai zvenyu asi muchanyarara. Zimdollar hakuna kwarinoenda. Kana uchida zveUSD enda kuAmerica uko muno muZim hatidaro😂

Leee 3 weeks ago

Kana usina zvekutaura nyarara mhani imbwa iwe

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