Zimbabwe should adopt the South African rand

ZIMBABWE should adopt the South African rand as its official currency on an interim basis as a way of stabilising the economy, deputy Finance Minister Terrence Mukupe has said.

This also comes as the country's liquidity position remains tight and there have been desperate calls by various stakeholders such as industrial bodies for a solution to the chronic issue or problem, which President Emmerson Mnangagwa has tried to cure by implementing a number of policies including attracting foreign investments.

Said Mukupe, "It's a good thing to join the Rand Monetary Union as a temporary measure, the same way we adopted the bond notes to stabilise the economy.

"The problem why we can't join the rand union. it's not that we don't want. but what people forget is that you can't join without your own currency. Because you come up with your own currency then they determine how much of your it you have in circulation. Then the amount of money you have in circulation is then somehow backed by the rand and the South African rand can then come into your country and float freely.

"That it means is that as a country you now have access to deeper financial markets in South Africa such as bond markets which we don't have here," said Mukupe.

The Rand Monetary Union is made up of South Africa, Lesotho, Namibia and Swaziland. There have been numerous calls by various sectors for the government to adopt the Rand in order to make Zimbabwean industry more competitive.