'Yuan, Yen, Rupee unlikely to solve Zim's economic problems'

Zimbabwe's move to adopt the Chinese Yuan, Japanese Yen, Indian Rupee and Australian Dollar is unlikely to solve the country's economic problems, Norwegian economist Erik Reinert said Monday.

In an interview on the sidelines of a public lecture on his book titled: How rich countries got rich… and why poor countries stay poor, held at the National University of Science and Technology (NUST) in Bulawayo, organised in conjunction with the Confederation of Zimbabwe Industries (CZI), Reinert said the introduction of the multi-currency regime was not the panacea to the country's economic woes.

"Theoretically, introducing more currencies might look like the most ideal step to take to fully revitalise the economy, but in reality this is a different story. Zimbabwe is an innocent victim of financial and international speculation, and equally, bringing back the Zimbabwean dollar would bring back bad memories.

"Getting rid of the Zimbabwean dollar was necessary, not as a final solution, but as a provisional solution, yet bringing into the country's circulation multiple currencies will worsen the economy of the country," said Reinert.

Zimbabwe has recently become the only country in the world to approve the use of as many as seven currencies simultaneously as legal tender. The decision was unveiled by the acting governor of the Reserved Bank of Zimbabwe, Charity Dhliwayo, who said treasury had no immediate plans to re-introduce the local currency.

Reinert said to solve Zimbabwe's economy, cash flow and industry problems had to be addressed simultaneously.

Since 2009, the country has been using more of the United States Dollar, alongside the South African Rand, the Botswana Pula and the British Pound.

In December last year, Zimbabwe's Finance minister, Patrick Chinamasa, said the multiple currency system was to stay for  a foreseeable future.

Speaking at the event, Zimbabwean economist Erich Bloch said the problem in Zimbabwe was continuing because imperialism was still existent.

"Decisions are made by a select portion of cabinet and presidency, and this has led to the continued economic problems in our county," said Bloch.