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Mthuli Ncube: Fundamentals To Support Strong Zim Dollar In Place

Mthuli Ncube: Fundamentals To Support Strong Zim Dollar In Place

Finance and Economic Development Minister, Mthuli Ncube, on Thursday, insisted that the Government has put in place strong economic fundamentals to support the Zimbabwe dollar and full dollarisation is not an option.

Ncube said the Government is now focusing on ending arbitrage and speculative behaviour driving the depreciation of the local currency.

The local currency has shed considerable value in recent months both on the formal and informal markets and economic commentators and ordinary people have called for the dollarisation of the economy.

The Zimbabwe dollar is trading at ZWL$338: US$1, while on the parallel market it is going for anything between ZWL$500-ZWL$550 against the greenback.

Addressing a meeting on the currency crisis convened by the Political Actors Dialogue (POLAD) interlocutors in Harare on Thursday, Ncube blamed indiscipline within the market for the loss of value of the local currency. Said Ncube:

When you look at the fundamentals, they are strong in the sense of the deficit position, fiscal position and the monetary policy position, and when we consider the current account situation as well.

We should end the year again with a current account surplus with more inflows than outflows into the economy.

So, the fundamentals are strong; there is nothing wrong with the fundamentals.

It is really the arbitrage and speculative behaviour that we see in the market, and we have taken some measures to deal with that.

Ncube also ruled out full dollarisation, saying the country will continue the use of the dual currency system in line with the Government’s five-year de-dollarisation plan. He said:

We cannot just have the USD circulating because that will wipe out the balance sheets of companies. If you do that it will create a very dangerous situation.

You will also wipe out the pension balances so we do not want to go there, we have been there before.

Here we are trying to compensate citizens for losses (incurred when the country adopted the multi-currency regime) and people want to go back there.

More: New Ziana

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24 Comments

Putin 2 weeks ago

what fundamentals......


Jerk 2 weeks ago

Mmmm bad journalism. Don't put "Strong" and "Zim dollar" in same sentence.


Jerk 2 weeks ago

I'll rephrase:
Mthuli Ncube: Strong Fundamentals in place. Support Zim Dollar.

Chawabvunza 2 weeks ago

I think Finance and Economic Development Minister Mthuli Ncube is partly right that if he dollarises now some business shall suffer great loses because bank rate stands at RTGS 138: 1'US$. He wants civil servants salaries to remain at half us$:and the rest in rtgs.. To make sure that he puts government workers at a reasonable salary, he must increase both us$ and rtgs components.

NYIKA INOURAIWA NE MBAVHA DZAYO.

NGAAPINDE HAKE CHAMISA


Sansui 2 weeks ago

Shit


Jonnynotsobright 2 weeks ago

mmmm according to the textbook this should have worked, wonder what has gone wrong?


Gafa 2 weeks ago

We are informal no need to hev all his fundamentals injake njake chero akadii he controls nothing. Tovhara zvikoro nezvipatara tombogadzira maroads nama dams ****.


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bvunzayivamwe 2 weeks ago

ko kumbo consulta vana Zambia nana mocambique vanga vane similar situations sesu kuti vakazviita cey ,zvingabetsere nyika ino zvikuru .
I don't know kuti problem ye Zimbabwe i economic fundamentals here or just misplaced politics ,hameno


Freda 2 weeks ago

Iri kuenda kupi mari yema exports tat the million dollar ? coz if the surplus is true then we shld be excess supply of foreign currency.Another point to note is that our economy is nw basically informal therefore information ya minister is totally wrong.


nswati 4th 2 weeks ago

unomhlanyo Ncube


HALLUCINATING AS USUAL. ANGA ANZWA NEKUGEZERA MU BUCKET 2 weeks ago

🥨


Joe Brownn 2 weeks ago

The USD is now trading at $600 - $650 RTGS on the parallel market.


Chimboti Pizza 2 weeks ago

Ndospeculative behaviour ikutaurwa iyi, ndekupi kwaakaona USD richichinjwa neZWL650

Blue 💙 2 weeks ago

NONSENSE


ppp 2 weeks ago

Zimdollar bhooo asi ngarimbobviswa mamwe maZero anenge ti wandei


Tio4 2 weeks ago

Mthuli is insane, he should do the honorable thing and hang his boots. vanhu varimu street varikumuudza zvekuita.


vanotenga zvigumwe 2 weeks ago

mtuli is insane. what surplus is he talking about. surplus that can not be felt or seen is not a surplus


Cde Cimba 2 weeks ago

Big up Mtuli Ncube, you are one of the best finance minister to ever grace our motherland Zimbabwe. Fundamentals are more critical in economy building. Only cowards will give in to laymen's demands of full dollarisation without weighing it's negative effect on the economy as a whole. The measures you put in place are painful but they are the only way to bring a sustainable economic development that is not polarized. Full dollarisation will be catastrophic to the economy.
Kudos to you Sir🤑💯🤝🤜🤛👊👍


Chimboti Pizza 2 weeks ago

@Tozivepiko, for your own information, maMP, maminister and even the President vanobhadharwa neZWL

Tozivepiko 2 weeks ago

Heyi does Mthuli salary include the bond tissues or it's hard currency

Kombat 2 weeks ago

Zim dollar inesimba


BABA VA BLUE 2 weeks ago

True Zim dollar is the way to go
please guys don't my son he's mentaly unstable


Chimboti Pizza 2 weeks ago

Handisi weZANU zvangu but it's clear to see kuti dollarisation hapana kwainotisvitsa. Let's support our own currency, the Zimbabwean Dollar✊


Parasite 2 weeks ago

My boy is suffering from bior polar disorder guys don't take him serious.


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