Business / Economy
Zimdollar demonitised
20 Dec 2013 at 02:08hrs | Views
Government will issue Treasury Bills to raise $20 million to compensate Zimbabwe dollar account holders who lost money following the adoption of a multiple currency system in 2009.
Minister Chinamasa said all Zimbabwe dollar accounts that had money by January 2009 would be credited with US dollars.
Government, through then Acting Finance Minister Chinamasa, adopted the multi-currency system in 2009 to counter hyperinflation and bring stability to the economy.
"It is imperative that the Zim dollar is demonitised and that all Zimdollar balances, including Zimbabwe dollar paid up permanent shares balances, are converted to US dollars for those accounts in financial institutions' books with effect from the 31st of January 2009," said Minister Chinamasa.
"One way to do this is to treat all accounts equally without regard to the relative balances that obtained on the conversion date."
Minister Chinamasa said the balances would be paid through the issuance of Treasury Bills with Tier 1 capital status to the respective financial institutions for them to further credit accounts of their clients in their books.
He said the multi-currency regime would stay, and Government could introduce other currencies into the basket.
"Government has continued to reassure the market that the multi-currency regime is here to stay. This position, I must add, is anchored in our Zim-Asset blueprint, and as a matter of fact, depending on size or volume of trade flows, I would be persuaded to introduce other foreign currencies to the cocktail of multi-currency regime currencies, if conditions warrant," said Minister Chinamasa.
Zim-Asset is the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, the economic blueprint underpinning the ZANU-PF Government's policies from 2013 to 2018.
Zimbabwe uses a basket of currencies that include the US dollar, the Botswana pula, the South African rand, the British pound and the euro.
The greenback is the predominant currency in the basket with coinage largely being the South African rand.
Minister Chinamasa said all Zimbabwe dollar accounts that had money by January 2009 would be credited with US dollars.
Government, through then Acting Finance Minister Chinamasa, adopted the multi-currency system in 2009 to counter hyperinflation and bring stability to the economy.
"It is imperative that the Zim dollar is demonitised and that all Zimdollar balances, including Zimbabwe dollar paid up permanent shares balances, are converted to US dollars for those accounts in financial institutions' books with effect from the 31st of January 2009," said Minister Chinamasa.
"One way to do this is to treat all accounts equally without regard to the relative balances that obtained on the conversion date."
He said the multi-currency regime would stay, and Government could introduce other currencies into the basket.
"Government has continued to reassure the market that the multi-currency regime is here to stay. This position, I must add, is anchored in our Zim-Asset blueprint, and as a matter of fact, depending on size or volume of trade flows, I would be persuaded to introduce other foreign currencies to the cocktail of multi-currency regime currencies, if conditions warrant," said Minister Chinamasa.
Zim-Asset is the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, the economic blueprint underpinning the ZANU-PF Government's policies from 2013 to 2018.
Zimbabwe uses a basket of currencies that include the US dollar, the Botswana pula, the South African rand, the British pound and the euro.
The greenback is the predominant currency in the basket with coinage largely being the South African rand.
Source - herald
