Business / Economy
'No to Zim dollar return,' says CCZ
23 Jul 2013 at 04:44hrs | Views
The Consumer Council of Zimbabwe says the economic environment is not conducive for the return of the Zimbabwe dollar.
Speaking at the Zimbabwe National Chamber of Commerce Public Private Dialogue seminar held in Harare last week, CCZ deputy executive director Mrs Rose Mpofu said that consumers were not prepared for the return of the local currency.
"We did a mini survey around the central business district of Harare and 95 out of 100 respondents said they do not want the return of the Zim dollar. Consumers are scared of the return of the Zimbabwean dollar," she said.
She also said that the local currency should be introduced when the agricultural and manufacturing sectors are fully functional.
"The return of the dollar should come when agricultural and industrial capacity has been restored to 100 percent and is uniform," said Mrs Mpofu.
Many analysts have argued that currency reform should be considered after restoration of macro-economic stability, increased industrial capacity utilisation and productivity and reduced country risk.
However, the Secretary for Economic Planning and Investment Promotion, Dr Desire Sibanda, said Zimbabwe was ready for the re-introduction of its local currency.
"The Medium Term Plan articulates that the multi-currency system should stay in place until 2015 in line with the lifespan of the MTP.
"An average economic growth rate of 7,1 percent should be achieved during the plan period," he said.
Meanwhile, macro-economist Mr Joseph Mverecha said that Zimbabweans should have faith in their local currency.
"The people of Zimbabwe should have high expectations for the return of the local currency as the foreign currency like the US dollar will be overtaken in the near future by China," he said.
The multiple currency system was introduced in January 2009 by then Acting Finance Minister Patrick Chinamasa.
Speaking at the Zimbabwe National Chamber of Commerce Public Private Dialogue seminar held in Harare last week, CCZ deputy executive director Mrs Rose Mpofu said that consumers were not prepared for the return of the local currency.
"We did a mini survey around the central business district of Harare and 95 out of 100 respondents said they do not want the return of the Zim dollar. Consumers are scared of the return of the Zimbabwean dollar," she said.
She also said that the local currency should be introduced when the agricultural and manufacturing sectors are fully functional.
"The return of the dollar should come when agricultural and industrial capacity has been restored to 100 percent and is uniform," said Mrs Mpofu.
Many analysts have argued that currency reform should be considered after restoration of macro-economic stability, increased industrial capacity utilisation and productivity and reduced country risk.
"The Medium Term Plan articulates that the multi-currency system should stay in place until 2015 in line with the lifespan of the MTP.
"An average economic growth rate of 7,1 percent should be achieved during the plan period," he said.
Meanwhile, macro-economist Mr Joseph Mverecha said that Zimbabweans should have faith in their local currency.
"The people of Zimbabwe should have high expectations for the return of the local currency as the foreign currency like the US dollar will be overtaken in the near future by China," he said.
The multiple currency system was introduced in January 2009 by then Acting Finance Minister Patrick Chinamasa.
Source - herald
