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RBZ Rules Out Full Dollarisation

RBZ Rules Out Full Dollarisation

The Reserve Bank of Zimbabwe (RBZ) says it will promote the use of the Zimbabwe dollar, among other foreign currencies, as it is ideal for promoting the growth and competitiveness of the economy.

In the Monetary Policy Statement released on the 7th of February 2022, the RBZ said the use of the local currency has helped the economy to grow by 7.8% in 2021. The central bank said:

The use of the local currency has helped the economy to grow by 7.8% in 2021 following the increased local currency backed aggregate demand that was necessitated by increased agricultural output and expansion in Government infrastructural projects.

The central bank said it was wrong for Zimbabwe to totally abandon its currency in 2009 as the country did not have sufficient foreign exchange liquidity to meet its foreign currency commitments. The bank said:

The past experience of the country is quite instructive that promotion of the use of local currency is beneficial. In 2009 the country legislated a fixed exchange rate under the auspices of dollarisation.

Electronic or virtual currency was commingling with physical foreign currency and the two were at par.

With hindsight, what was supposed to have been done then was to allow the local currency to be part of the basket of currencies as evidence on the ground shows that the country did not have sufficient foreign exchange liquidity to meet its foreign currency commitments even under dollarisation.

Legislation of a fixed exchange rate, as was the case in 2009 when the US$ was introduced as the currency of transaction, is not ideal for any economy as it renders the economy uncompetitive and a supermarket economy and gives the wrong impression that foreign currency is a domestic currency that is earned without exporting.

Foreign currency needs to be earned from foreign sources such as exports and remittances and competitiveness of local production becomes very essential to promote exports, and stability of the local currency is key to promoting investment and for value preservation.

Among other things, the RBZ raised the limit on mobile banking transactions from person to person from ZW$5 000 to ZW$10 000 per transaction and from ZW$35 000 per week to ZW$70 000 per week.

The central bank also resolved to increase the cash withdrawal limit for the banking public from ZW$2 000 to ZW$5 000 per week.

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17 Comments

MaFyt 3 months ago

@Mboko, for your own information i am HEAVILY married bro siring 16 children from 6mothers. You just cant feed yourself a days pangu haunga kwanisi just one meal nekuda kuombera kwako ikoko

zviri zveku tora vakadzi vangu i dont care women are always more,than,men so hapana chino rwadza worse ndagara ndine munda wavo kudai


🥸 3 months ago

Here they go again. The same guys who once said the bond note is equivalent to USD🧐🤔


EG PFUUU 3 months ago

PAMBERI NE ZANU PF


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Tkt 3 months ago

@Emmerson --- i dont wait for someone to provide me wangu, never

ndozci shandira ini neangu maoko 24/7

zi-THIEF riya rakoniwa ka kramba richi shandisa ID yangu


Vybz Kartel 3 months ago

Ini handina basa nazvo guys..am mature for that...I don't care whether am e only one or we thousand...handichemere zita..inga kuFacebook kune1000 vanoshandisa zita rimwe??grow up guys..iwe neni tinebasa... let's build Zimbabwe.. nyika inovakwa nevene vayo

, 3 months ago

Mazita aita sei musaita kunge Mwonzora kana rako ratorwa tsvaka rimwe sezvakaitwa naChamisa

Emerson robert 3 months ago

I understand you these criminals must be dealt with here on this platform with harsh words **** .identity theft
.... VYBZ KARTEL ,Tkt ,emerson . Please stop using these 3 names . Create your own Pindula name

Mephistophles 3 months ago

If the economy grew by 7.8%, then why are you refusing to increase the wages of civil servants? Reality on the ground points to economic decline and not growth. The bond note continues on a free fall against tge US Dollar. Inflation & commodity prices continue to increase. How does a weak currency such the Bond Note promote economic growth???


MaFyt 3 months ago

I am against the abandonment of the Local currrncy, yes i mean it

Historicaly no country has ever rose from the ashes to stardom using a currrency stronger than the prevailing stronger currency in the region

i say no to DOLLARIZATION but partial dollarization YES, like what i'v prevously stated

some of us dont know that the cash we were using that period was being imported using minerals!

no company ever openned rather with we had distribution centres countrywide, saka ndinoti pamberi neZIM-DOLLAR pasi neUSD better adopt the Mozambican Mertical on Zambian Kwacha shoukd the Rand fail


Boss Veda 3 months ago

@Mafyt idofo uyo idofo uyo

Emerson robert 3 months ago

Pure Garbage....my friend ....🤣ko MUKURU ,WORLD REMIT. Gvt ngaivhare mukuru ndopaucha ziya mfana ķkkkk apa wakamirira sistrani itumire mari kkk

Jinn 3 months ago

Africa needs leaders who care about people,respect people,leaders who are educated,leaders who are innocent,not gugurahundis,leaders who about the country as a whole Baba, leaders who gives others a chance to lead

💛💛💛


Scorched earth 3 months ago

💛💛💛💛💛🔥

Scorched earth 3 months ago

One of the greatest lies is that the USD does not foster economic growth nor product competitiveness.
Zim economy grew by 11% in 2011 whilst we used multiple currencies. We grew under 6% last year according to WB, so where does the extra 2 come from??
We need USD FULL IMPLEMENTATION for a stable economic environment that can lure in invests. Our FDI also dropped. Who wants to invest in a country without power kana mvura hayo? Who wants to invest in a currency that loses power like no one's business

#CCCtoConquer🔥💛💛💛


Mai TT 3 months ago

Haaaaaa kana kuda kutrayer kurisimbisa zvinengei hapana hapana 1 haasi 11


chimuti 3 months ago

Musiyano wakafanana
Hapana hapana apa


kim luta 3 months ago

zvozotibatsira sei



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