Business / Economy
Mugabe wants the Zimdollar back
06 Jul 2013 at 12:22hrs | Views
President Robert Mugabe Friday revealed that he has been working confidentially with Reserve Bank of Zimbabwe (RBZ) to introduce a gold-backed Zimbabwe dollar currency once the economy has stabilised.
Mugabe told thousands of his Zanu-PF supporters during the party's election manifesto launch in Harare yesterday that it was possible to restore the local currency which was dropped for the multicurrency regime in 2009.
"We are mining a lot of gold in this country. That gold should support our currency. We will be able to put our Zim Dollar equivalent to the American dollar or even stronger depending on the quantity of our gold so that you are able to have a good balance of payment," said Mugabe.
The Zanu-PF presidential candidate, who is seeking to extend his 33-year-old rule by another term, said reintroducing the local currency will enable the general populace to access money easily.
"When you have enough gold, you can sell that gold and make your payments for imports because currently an ounce of gold is worth over a $1 000.
"So we are going to be discussing that issue soon but it will depend on our preparedness.
"We have been talking with Gono (Gideon) the Reserve Bank governor over the matter," he said adding that the rural folk is finding it hard to get hold of the United States dollar.
"We will do it through the central bank although it will be a government policy. When we do that, we will be able to print our own money because this American dollar we can't print and more so, we have sanctions," Mugabe said.
Mugabe's announcement came as a surprise to many especially within the Zanu-PF system amid rumours spreading that relations between Mugabe and Gono were strained. Gono kept the Zanu-PF government afloat after taking over the governorship of the central bank in December 2003.
He faced the daunting task of stabilising the economy and embarked on quasi-fiscal activities in an effort to sustain the economy, but this led to unprecedented hyperinflation.
Gono was criticised for saving Mugabe from going down due to economic pressures while also assisting key institutions of the State functional through quasi-fiscal activities.
He became a top enemy of the MDC whose secretary-general Tendai Biti at one stage called for his public execution.
Interestingly, Biti recently praised Gono describing him as " very experienced and sober".
But hardliners in Zanu-PF have been clamouring for Gono's head accusing him of working too closely with MDC and Biti leading to reports that all was not well between Mugabe and the central bank boss.
Mugabe told thousands of his Zanu-PF supporters during the party's election manifesto launch in Harare yesterday that it was possible to restore the local currency which was dropped for the multicurrency regime in 2009.
"We are mining a lot of gold in this country. That gold should support our currency. We will be able to put our Zim Dollar equivalent to the American dollar or even stronger depending on the quantity of our gold so that you are able to have a good balance of payment," said Mugabe.
The Zanu-PF presidential candidate, who is seeking to extend his 33-year-old rule by another term, said reintroducing the local currency will enable the general populace to access money easily.
"When you have enough gold, you can sell that gold and make your payments for imports because currently an ounce of gold is worth over a $1 000.
"So we are going to be discussing that issue soon but it will depend on our preparedness.
"We have been talking with Gono (Gideon) the Reserve Bank governor over the matter," he said adding that the rural folk is finding it hard to get hold of the United States dollar.
Mugabe's announcement came as a surprise to many especially within the Zanu-PF system amid rumours spreading that relations between Mugabe and Gono were strained. Gono kept the Zanu-PF government afloat after taking over the governorship of the central bank in December 2003.
He faced the daunting task of stabilising the economy and embarked on quasi-fiscal activities in an effort to sustain the economy, but this led to unprecedented hyperinflation.
Gono was criticised for saving Mugabe from going down due to economic pressures while also assisting key institutions of the State functional through quasi-fiscal activities.
He became a top enemy of the MDC whose secretary-general Tendai Biti at one stage called for his public execution.
Interestingly, Biti recently praised Gono describing him as " very experienced and sober".
But hardliners in Zanu-PF have been clamouring for Gono's head accusing him of working too closely with MDC and Biti leading to reports that all was not well between Mugabe and the central bank boss.
Source - daily news
