Business / Economy
Zimbabwe govt clarifies on use of Chinese Yuan
22 Jan 2016 at 16:34hrs | Views
The Reserve Bank of Zimbabwe has set the record straight on the use of the Chinese Yuan saying it is only part of the trading currencies while the United States dollar will remain the country's settlement currency.
The clarification on the adoption of the Yuan as a trading currency comes after speculation within the market that the country will adopt Yuan as a settlement currency.
The International Monetary Fund (IMF) has also taken the Yuan as part of the special drawing rights.
The social media has sent panic shivers among depositors and the business sector by speculating on unsubstantiated claims.
Briefing captains of industry, RBZ Governor Dr John Mangudya says the US dollar will remain the settlement currency while other currencies will be trading currencies.
Dr Mangudya says there is need to pluck out leakages within the economy to ensure the coming of new money into the economy will not be abused by business executives.
The financial services sector has become stable though issues to do with high interest rates continue to affect borrowing by productive sectors of the economy.
The clarification on the adoption of the Yuan as a trading currency comes after speculation within the market that the country will adopt Yuan as a settlement currency.
The International Monetary Fund (IMF) has also taken the Yuan as part of the special drawing rights.
Briefing captains of industry, RBZ Governor Dr John Mangudya says the US dollar will remain the settlement currency while other currencies will be trading currencies.
Dr Mangudya says there is need to pluck out leakages within the economy to ensure the coming of new money into the economy will not be abused by business executives.
The financial services sector has become stable though issues to do with high interest rates continue to affect borrowing by productive sectors of the economy.
Source - ZBC
