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We Can't Adopt The US Dollar As The Sole Official currency - Ncube

We Can't Adopt The US Dollar As The Sole Official currency - Ncube

The Minister of Finance and Economic Development, Professor Mthuli Ncube, has said Zimbabwe will not adopt the United States dollar as the country’s sole currency.

He said the government will work to progressively defend the value of the local currency.

This came out on the first day of the three-day 2022 Parliamentary pre-budget seminar which opened in Victoria Falls Saturday.

His remarks come amid calls by some Members of Parliament, particularly opposition legislators, for a return to the US dollar. Ncube said:

Colleagues we cannot adopt the United States dollar alone as the official currency. You were there before and there were queues at banks, huge foreign currency deficits and you had deflation. That was because of the US dollar. It is not a good idea, and it will be suicidal to do so.

What has happened is after we introduced the local currency, industry is picking, it’s about stabilising the currency. We are reforming the country, running the country under a basically dual currency regime (Zimbabwe dollar and US dollar) and of course other smaller currencies.

We are using both currencies and you will see shifts one way or the other. We are trying to stabilise the Zimbabwean dollar and we have done well to ensure salaries are not eroded. The United States dollar is performing the role of a savings and investment currency while the Zimbabwean dollar is performing more the role of a transactional currency than an investment currency.

This comes as the local currency is losing value against the United States dollar prompting businesses to prefer the foreign currency which they say stores value.

In his presentation, Reserve Bank of Zimbabwe (RBZ) governor, Dr Mangudya said to reduce the widening gap between the parallel market and the auction rate, the RBZ will ensure “allotments of foreign currency to all bona fide transactions through the auction system including to individuals”.

More: The Sunday Mail


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24 Comments

Spiderman 7 months ago

Voodoo Economics


Jb 7 months ago

Haurevi nhema fuel yemuno inenge ine 4 ma Agents anotengeserana kusvika yazosvika kwatiri yakudhura coz of corruption ,with all respect mr mnangagwa and your crew zvaramba zve turn around imbopaiwo vamwe not kuti mazvidzikisira asi kuti murangarirwewo pane zvakanaka zvamune maitawo #ngaapinde hake mukomana

Piche piche 7 months ago

Kubva zvavapinda pachigaro one benefit yatinoti ta enjoyer ndeipi ini hapana kana chimwe chandaona chakashanduka kusara kwekuti kubva pa siya va Gushungo UsRtgs ririkungoita mutserendende mhino yedhongi rakananga mawere dzangovawo shungu asi kana tatadza ngatibvumei

Spiderman 7 months ago

Voodoo Economics


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R. K 7 months ago

Dollarisation is the only way to go


Rega zvakadaro"" 7 months ago

Zvemari siyanai nazvoo makazvitadza karee and hamuna kana solution now zvatove bad to worse.... ipai vamwe mukana timboonawo kutii vanoitei


Piche piche 7 months ago

Ini ndongoti pamberi ne MDC ZANU yakonewa

Mike Mpala 7 months ago

The Zimbabwe economy does not generate sufficient forex inflow needed to adopt the $US as Zimbabwe ' sole currency .Adopting the $US will lead to a liquidity crunch which will hamper the development of the economy and also unleash other forms of abitrage activities which will harm consumers.
Prof Ncube is absolutely ryt.


Chapwititi 7 months ago

That's true,Tine Zim dollar here?Mari tatinayo izvozvi icurrency here?Hapana hapana,vanhu ngatisasapota zvakadhakwa.

Piche piche 7 months ago

Hpana zvese izvo Zimbabwe ngaishandise states dollar zvoramba nei during Mugabe era zvaifaya zvakadaro wani we had stable prices ma salaries were stable zvavanoda kuti tishandise local currency vasingakwanisi Ku controller rate kumabanks unopiwa kamari kashoma musa supoter zvakadhakwa kudaro kana vakonewa tti # mkomana ngaapinde hake vanotamba Nayo Nyika ava kana teacher achitambira mari iri equivalent to 130 states dolar wats that Zimbabwe needs change and I personally support change we are exhausted we need regime change

King 7 months ago

I second that

Chapwititi 7 months ago

The currency is stabilizing @1usd to 93,usadaro Minister.


blaz venyu 7 months ago

munhu akauraya babican bank momupa kuti aite run economy yenyika😂😂😂😂 ini will never open an acc solong magirazi uyo aripo ndoisa pasi pe pillow😎😎😎😎


Madala Banda 7 months ago

Kkkkkk magirazi

Gogodera 7 months ago

Kkk


Tang ku 7 months ago

Mugabe was a bit educated than mnanangagwa and his dandaheads but for some decades he"Mugabe " has failed to turn around the economic , he introduced Agro checks,bearrerchecks,bondnotes but nothing came positive kusvika VaTsvangirai VaBiti Va Chamisa VaMadzorera vashanda zvakaomarara kusvika nyika yaita zvakanaka for 5years every body agree with me saka zvanamthuli izvi ndezvevanh u vakatozungaira zvavo The only option is to vote for a new committed government that Delivers chete


Piche piche 7 months ago

Iwe ndiwe munhu anoziva tikatora iwe neni totsvaka vamwe vanepfungwa dzakaita sedzako handioni Nyika ichikonewa kubudirira

Jean 7 months ago

Nonse Ntuli


Baba chanana 7 months ago

Yaaa its makes sense when you saying it but on the its totally different. Everything that we need on our daily basis is calling for USD l mean basic, especially rentals uuuuummm its now beyond the capacity of general population esp your employees Honourable Minister, l mean civil servants do something not kungogumira muma unfulfilled promises


R`G 7 months ago

He is right but what he is wrong about is that they can stabilize the country because as long as we have these people representing us the economy will never stabilize


Greedy 7 months ago

What goes up and never get Down..?
It's Zim prices and the Bondollar zw.


chibaba 7 months ago

Avawo ava now i doubt ma credentials avo ,economics dzavo ndedzekufungidzira hapana zvinozikanwa chero mwana wecreche akuramba bond racho ravakusimbirira


Sir 7 months ago

Tsano ka musade kutaura zvisina basa imarii dzamagadzira dzichingoramba kushanda mirai kunyepera vanhu


Sir 7 months ago

Tsano ka musade kutaura zvisina basa imarii dzamagadzira dzichingoramba kushanda



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