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"Zimbabwe Has No Capacity To Fully Dollarise" - RBZ Governor Mangudya

The Governor of the Reserve Bank of Zimbabwe (RBZ), Dr John Panonetsa Mangudya has said the southern African country has no capacity to fully dollarise.

His remarks come amid increased calls to redollarise as a way of addressing current economic challenges manifesting through a run-away parallel market exchange rate, inflation, and a depressed local currency.

Appearing before the Parliamentary Portfolio Committee on Budget and Finance, the apex bankโ€™s chief said recent monetary and fiscal pronouncements were part of Government efforts to cure the economic ills. New Ziana quotes him as saying:

We do feel the pain of this economy and because we feel the pain of this economy that is why we are doing all we think is necessary for this economy to recover.

This economy has no capacity to fully dollarise. The preference might be there, which is emotional. I feel the emotion but the capacity to re-dollarise this economy is not there.

Zimbabwe will become a supermarket economy (if the country re-dollarises). We have been there before and that journey is a painful journey which as a governor of the Central Bank I will not propose to the August House. It is an easy way out, but the wrong way out.

Last week, the Government legislated the continued use of the US dollar alongside the local currency for the next five years to entrench confidence in the market.

On top of that, the use of the inter-bank market exchange rate in all economic transactions will also be legislated as the Government seeks to rein in the parallel market bench-marking of prices.

The RBZ also hiked interest rates in a bid to discourage speculative borrowing from banks.

Mangudya said he believed Zimbabweans wanted their currency to succeed, and as such, the Government would do all it can to ensure it remains stable.

Some analysts fear that the scarcity of foreign currency will intensify especially considering that Zimbabwe is not exporting enough to get forex.

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33 Comments

zoe 1ย month ago

why not resign like you promised


thrasher 1ย month ago

I believe this man he is very competent just because things are bad you believe everyone is bad

๐Ÿ…ผ๏ธŽ๐Ÿ…ฐ๏ธŽ๐Ÿ†๏ธŽ๐Ÿ…ฐ๏ธŽ๐Ÿ†…๏ธŽ๐Ÿ…ฐ๏ธŽ๐Ÿ†‰๏ธŽ๐Ÿ…ฐ๏ธŽ 1ย month ago

๐—œ๐—ณ ๐—ญ๐—ถ๐—บ ๐—ต๐—ฎ๐˜€ ๐—ป๐—ผ ๐—ฐ๐—ฎ๐—ฝ๐—ฎ๐—ฐ๐—ถ๐˜๐˜† ๐˜๐—ผ ๐—ฑ๐—ผ๐—น๐—น๐—ฎ๐—ฟ๐—ถ๐˜€๐—ฒ, ๐˜๐—ต๐—ฒ๐—ป ๐—ถ๐˜ ๐—บ๐—ฒ๐—ฎ๐—ป๐˜€ ๐— ๐—ฎ๐—ป๐—ด๐˜‚๐—ฑ๐˜†๐—ฎ ๐—ฎ๐—ป๐—ฑ ๐— ๐˜๐—ต๐˜‚๐—น๐—ถ ๐—ฎ๐—ฟ๐—ฒ ๐—ฟ๐˜‚๐—ป๐—ป๐—ถ๐—ป๐—ด ๐—ผ๐˜‚๐˜ ๐—ผ๐—ณ ๐—ถ๐—ฑ๐—ฒ๐—ฎ๐˜€ ๐—ฎ๐—ป๐—ฑ ๐˜๐—ต๐—ฒ๐˜† ๐—บ๐˜‚๐˜€๐˜ ๐˜€๐˜๐—ฒ๐—ฝ ๐—ฑ๐—ผ๐˜„๐—ป ๐—น๐—ถ๐—ธ๐—ฒ ๐—ด๐—ผ๐—ผ๐—ฑ ๐—ฏ๐—ผ๐˜†๐˜€ ๐—ฎ๐—ป๐—ฑ ๐—ฎ๐—น๐—น๐—ผ๐˜„ ๐—ป๐—ฒ๐˜„ ๐—ฐ๐—ผ๐—บ๐—ฝ๐—ฒ๐˜๐—ฒ๐—ป๐˜ ๐—ฏ๐—ฟ๐—ฎ๐—ถ๐—ป๐˜€ ๐˜๐—ผ ๐—ฟ๐˜‚๐—ป ๐˜๐—ต๐—ฒ ๐˜€๐—ต๐—ผ๐˜„. ๐—ฆ๐—ผ ๐˜€๐˜๐—ถ๐—ฐ๐—ธ๐—ถ๐—ป๐—ด ๐˜๐—ผ ๐˜๐—ต๐—ฒ ๐—ถ๐—บ๐—ฝ๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐—ถ๐˜€๐—ต๐—ถ๐—ป๐—ด ๐—ฟ๐˜๐—ด๐˜€ ๐˜€๐˜‚๐—ฝ๐—ฒ๐—ฟ๐—บ๐—ฎ๐—ฟ๐—ธ๐—ฒ๐˜ ๐—ฐ๐˜‚๐—ฟ๐—ฟ๐—ฒ๐—ป๐—ฐ๐˜† ๐—ถ๐˜€ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ผ๐—ป๐—น๐˜† ๐—ผ๐—ฝ๐˜๐—ถ๐—ผ๐—ป? ๐— ๐—ถ๐—ป๐—ฑ ๐˜†๐—ผ๐˜‚, ๐—ฝ๐—ฒ๐—ผ๐—ฝ๐—น๐—ฒ ๐—ฑ๐—ผ ๐—ป๐—ผ๐˜ ๐—น๐—ถ๐˜ƒ๐—ฒ ๐—ผ๐—ป ๐—ฏ๐—ฟ๐—ฒ๐—ฎ๐—ฑ ๐—ฎ๐—น๐—ผ๐—ป๐—ด, ๐˜๐—ต๐—ฒ๐˜† ๐—ฎ๐—น๐˜€๐—ผ ๐—ป๐—ฒ๐—ฒ๐—ฑ ๐˜๐—ผ ๐—ฏ๐˜‚๐—ถ๐—น๐—ฑ ๐˜๐—ต๐—ฒ๐—ถ๐—ฟ ๐—ต๐—ผ๐—บ๐—ฒ๐˜€ ๐—ฎ๐—ป๐—ฑ ๐—ฝ๐—ฟ๐—ผ๐˜€๐—ฝ๐—ฒ๐—ฟ


Chimboti Pizza 1ย month ago

Ichi ndochokwadi manje, vakuti let's dollarise the economy mukufunga kuti maUSD acho anobvepi? Izvezvi titone chikwereti chatisati tabhadhara chakabva kudollarisation ya2009. Nyangwe Chamisa akapinda, maUSD acho anomawanepi. Saka mukufunga kuti nyika dzese dzine inflation asi dzisiri kudollariser kupenga here? Bvumai kupusa apa, idyai mabond๐Ÿ˜ 


vanotenga zvigumwe vauya 1ย month ago

u argue like a desperate man..... zim can dollarise ......15 billion usd lost that money can support economy for good five years... kazembe kazembe is confessing that zim is losing 100 million everyone month thru unaccounted gold sales ..... the list is endless...

WILLIAM SONBOY CHINEMBIRI 1ย month ago

It is the RBZ Governor John Mangudya who has no capacity to fully dollarise and not Zimbabwe economy.

If RBZ Governor John Mangudya cannot fully dollarise, he must do the honorable thing of shipping out.

VAMANGUDYA KANA MATADZA BASA REKUBATSIRA VAMTHULI NCUBE KURONGA UPFUMI HWENYIKA ENDAI MUNORIMA.

[NGAAPINDE HAKE CHAMISA]

[VOTE CCC FOR REAL CHANGE]

Yours faithfully
William Sonboy CHINEMBIRI
[THE ORIGINAL BUSH LAWYER]


Gafa 1ย month ago

Kutsigira Zanu unofanira kunge uri benzi rakakwana becoz a normal person wont tolerare foolishness like intertaining a failure like Mangundya.Lets go the Zambia way finish.Vaperegwa ngababve chete


Doug 1ย month ago

Looks like he is there to produce the local dollars for buying foreign currency. On the gold coins, the workers on the farms need to work for over a year to make an amount that is near to buying one coin. There was time, not long ago, when all banks, including those which closed, had ATMs dispensing US dollar withdrawals.


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Putin 1ย month ago

thts wy we are poor coz some of us are shallow minded,we are talking about economy vamwe a**** vanozviti chimboti pizza gakupolitics.if we keep on politicising economy we shall walk naked n bare footed.That mangundya thing is a failure ngavambomuisa kutourism ndokunoda mafunnies aanoita ok


๐Ÿ˜ 1ย month ago

Hesi PUTINI. ๐Ÿคฃ๐Ÿคฃ๐Ÿคฃ

Putin 1ย month ago

thts wy we are poor coz some of us are shallow minded,we are talking about economy vamwe a**** vanozviti chimboti pizza gakupolitics.if we keep on politicising economy we shall walk naked n bare footed.That mangundya thing is a failure ngavambomuisa kutourism ndokunoda mafunnies aanoita ok


Chimboti Pizza 1ย month ago

Exactly @Putin, let's not politicize the economy. Musarambe ZWL nekuti rakatanga neZANU

Machiavelli 1ย month ago

I wonder why Panonetsa is worrying himself sick over an issue that has already resolved itself. The fact is the economy has self dollarised. De facto. All that's left is for the government to acknowledge that fact and turn de facto dollarisation into de jure dollarisation. Everyone is using the USDollar. I for one only change USDollars into Ecocash to purchase airtime.

The only reason why Panonetsa & Co. insist on RTGS is so that they can continue to print toilet paper to pay for politically expedient non-sanctioned expenditure such as shoddy road construction etc. They fear that without RTGS they cannot buy votes because they can't print USDollars.


thrusher 1ย month ago

so the bond note empowers the government then your whole paragraph is a war why would you not enjoy the road construction

xyz 1ย month ago

jonso zvaurikufunga nezvaunofunga hazvishandi ,ko nharo ndedzei,just dollerize zvoramba muzotitaurire kuti mazviona takakuudzai kuti hazviite,simpuru


Maparamuro 1ย month ago

So 500ml of steri milk costs 85c US, how do I get my change in a fully dolarised economy???


Maparamuro 1ย month ago

Import USD coins at what cost and to who? Let's fix the politics and our currency will be fine. Zambia did it wani and now has the strongest currency in sadc

Maparamuro 1ย month ago

Bond coins were introduced because we could not have enough enough USD coins. Without USD coins you are forced to buy what you don't need, what you did not budget for and noone can survive with unintended expenditure. Rewind to 2009 and you will understand. We pretend to have what we dont that's the problem. No economy can survive solely on forex.
Our problem is not the Zim dollar but the gvt and monetary authorities, it's a problem of trust and that's what needs fixing

@Maparamuro 1ย month ago

USD coins can be imported... simple

Observer 1ย month ago

They have no capacity to fix what they have broken. That promise of 1:1 will forever haunt you.


mdara loli pop 1ย month ago

Ana mangudya kani. Tinokuudzai kuti varungu ngavadzoke muchiita nharo. Hamuzvi gone izvi. It requires ma skills ari outside scope yekufunga kwe munhu mutema


thrasher 1ย month ago

why do you believe varungu vari better than us we are all the same what differs is skin color plus Zimbabwe has bright minds it's either they left for other countries or can't get the opportunity because the current ones what to die in leadership

Chimboti Pizza 1ย month ago

@mdara loli pop uri mental slave, pfungwa dzevarungu dzakangofanans nedzevanhu vatema. Usazvidzikisire zvakadaro

G Boy 1ย month ago

just resign already ๐Ÿ˜ฌ๐Ÿ˜ฌ๐Ÿ˜ฌ๐Ÿ˜ฌ๐Ÿ˜ฌ


guy 1ย month ago

ngamasela kahambe lawo


Maparamuro 1ย month ago

USD will not solve Zimbabwe's economic problem, the problem is political and can only be solved by voting the right people into the political offices zvimwe zvese mahumbwe ayo


Oskid 1ย month ago

Even million blueprints and monetary measures with people not voted vanobira ma elections hhazvibudi.Kana Madhuku chaiye akahwina pasina manipulation dollar rinotowana simba kuenzana neUSA racho.Izvi zvokuti takabva kuhondo njani njani pasi nazvo


zanu pf 1ย month ago

mangundya and mthuli must just step down. that combination is toxic to our economy


economist 1ย month ago

madeals enyu kuAfrixim bank tomaziva. 10% of a billion is a lot



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