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No Finance Minister Would Push For Dollarisation - Mthuli Ncube

No Finance Minister Would Push For Dollarisation - Mthuli Ncube

Finance Minister and Economic Development Minister, Mthuli Ncube, on Wednesday, told parliamentarians that Zimbabwe will wipe out its banking sector completely if it adopts the US dollar as the sole currency.

Responding to a question in the National Assembly over the eroded salaries for civil servants and why the Government refused to dollarise, Ncube said dollarisation would be a bad idea and no finance minister worth his salt would do that. Ncube said:

Let me… explain what will happen under US dollarization which is what happened during the Unity Government.

What happened is that there was deflation and deflation means that we had negative growth and that was totally undesirable.

We also had an increase in bad debts and that is why we ended up creating ZAMCO to clean up the problem that was created by the USD.

The competitiveness of our industry was basically shut down. We just became a nation of importers and we de-industrialised and that destroyed our industry which has only been resuscitated by the introduction of the Zimbabwe dollar during the Second Republic.

Madam Speaker Ma’am, do you not think that it was ironic that during the USD regime, we had no foreign currency?

We had no reserves. We could not even pay our foreign debts. We only began paying our foreign debts after introducing the Zimbabwe dollar. It has given us the leeway to do what we do.

What we did during the Unity Government, we could not fix our roads. We borrowed money from South Africa to do the Plumtree-Harare-Mutare Road.

This time around, we are not borrowing, we are using our own resources and that capability has been afforded by the introduction of our own domestic currency.

If you introduce the USD only, tomorrow you will wipe out the banking sector completely because you have to convert all those Zim dollar balances into USD.

You will wipe out the bank balances of companies. Is that what you want?

You will create a serious situation if you adopt the USD in this country. It is a very bad idea.

No Minister of Finance should want that because it means you are walking on one macroeconomic tool when the toolbox is incomplete.

You only have a fiscal policy but no monetary policy. So, it is a bad idea.

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30 Comments

Vatongi vemhosva 2 weeks ago

Gadzirisai Nyika Varume musaba mari


Freda 2 weeks ago

True Mr Finance sir, but you failing to stabilize the zimdollar.Rate haribasa kana kuti 1 : 1000 .what is important is that it has to be stable inflation yoita a single figure.


Jerk 2 weeks ago

Our very own motivational finance minister who started RBZ with one dollar.


Goodhope 2 weeks ago

@Anonymous use your brains


domingos rui 2 weeks ago

Mr Muturi, do you earn RTGS imimi? Are govt officials earning zwl$? You don't want USD for others but for yourselves. you have double standards.


Gafa 2 weeks ago

Uri dununu fon yawakabata yakabvepi sei usingadi zvemuno sokutaura kwawaita.


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Jah🇿🇼Tsvarie-07 2 weeks ago

We understand that, a big BUT its no point doing all those things with our money when we are starving. our salaries cant put food on the table, rather find a solution that does both maintaining roads, dams, electricity and citizens lives.

if citizens are dying of hunger then there is no need to build roads coz there will be less travelled and vision 2030 in a country with dead bodies wont help in anyway.
AUSTERITY FOR PROSPERITY was meant for companies to recover the loses from USD to ZW$ coz then companies were burning money for salaries. now those same companies are closing down blaming the RBZ auction for failing to give the foreign currency to purchase raw materials. all that is hurting the citizens coz we are the grass and the ground that business and politics are fighting on 🤔
come 2023 you want us to chose the same fire that melts butter and harden an egg 😂


blue💙 2 weeks ago

go and register to vote and vote ccc


Tio4 2 weeks ago

Mthuli should just leave and the whole of zpf. Tendai Biti akazviita and he did it well,thumps up to Biti


Chimboti Pizza 2 weeks ago

True but akazviita thru kukwereta and nanhasi chikwereti ichocho hachisati chapera kubhadharwa. Akakwereta mabillions

economics made easy 2 weeks ago

yes Cde Minister ,if you dollarize you will wipe out the change money sectors and not the banks. Ask Dr Biti ,he did it . And which industry are you talking about ? We are a nation of jobsnesssss ,are we not ? not.You


Tkt 2 weeks ago

No sense goes beyond what the Minister said there.
Ndaka spakwa neFace ya@SettlementChikwinya during that moment when #Mtuli was explaining kkkk what a pale confused look on him like 🙅


Anonymous 2 weeks ago

If we dollarise tino converta ma rtgs bank account ese at interbank rate to USD. We do not wipe them so that the banking sector will thrive. Sezviya zvamakaita pamakaunza bond ne rtgs munhu wese anga aine USD rake mu account mukamuti watove ne Bond. Munongodarozve izvezvi moti munhu wese ane rtgs watove ne USD, Whats so difficult Mthuli, dindingwe ronakirwa richakweva handiti


Chimboti Pizza 2 weeks ago

@Anonymous tinoda munhu anofunga, iEconomics dzekupi idzodzo dzaukutaura. Zvawataura izvi kugadzira maUSD efake asipo paground, hapana kwatinoenda

NONSENSE. URIKU SUPPORTER MHURI IRI SWITZERLAND NE RTGS? 2 weeks ago

🥨


Goodhope Mupepe 2 weeks ago

Tinoda munhu anofunga

Cable Guy 2 weeks ago

🤣🤣🤣🤣🤣

muzimbo 2 weeks ago

pamberi nebhora musango, vaMutuli


Chawabvunza 2 weeks ago

Citizens do understand your point professor that if you dollarises now some businesses accounts may be wiped out because the dollar is too strong at this point in time. Mr Mthuli Ncube People would like you to come up with good salaries so that even if you split salaries, they will still remain satisfactory. Please Minister Ncube award civil servants a living salary.

NYIKA INOURAIWA NE MBAVHA DZAYO.

NGAAPINDE HAKE CHAMISA [NHC].

[VOTE CCC FOR REAL CHANGE].


THE FACT THAT YOU MUST COMPEL 2 EMBRACE IT, HAISI GOOD MONEY 2 weeks ago

🥨

Blue 💙 2 weeks ago

Embrace the Zim dollar first. Right now if civil servants get , for example, a 300% salary hike, the black market will respond in equal measure. We have to love everything Zimbabwe first. Change of mentality.

Baba Gumede 2 weeks ago

I agree with minister ncube .


PSC 2 weeks ago

Ichokwadi ichocho.
Ma USD to pay civil servants anobvepi??


eish 2 weeks ago

sicela ukukholisa I zimdollar Mr Mthuli


Chimboti Pizza 2 weeks ago

NdiMthuli ataura zvake but ataura chokwadi
Let's embrace and support our own currency✊
#PamberiNeZimDollar


Blue 💙 2 weeks ago

Some sense from Chimboti (Pizza

Gggg 2 weeks ago

I support you, sei tichida zvevamwe, akuita kuti mari yedu isashande tisu so ngatiremekedzei mari yedu guys

Tintin 2 weeks ago

???


Biticon 2 weeks ago

I will dollarize. Trump will have to come back into power and give us the USD15 billion that he promised us.


zero 2 weeks ago

$



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