Zimbabwe will continue using multi-currency system, says Mnangagwa

President Emmerson Mnangagwa has reiterated government's position as articulated in his State of the Nation Address (SONA) that Zimbabwe shall continue using the multi-currency system of exchange for foreseeable future.

He, however, said while the government shall continue with the multi- currency system which was put in place in 2009, the system entails that foreign exchange earners are not prejudiced of their regulatory foreign exchange receipts.

President Mnangagwa also said those who do not earn foreign exchange but produce for the domestic market, access foreign exchange through the banking system as per the current policy on foreign exchange management system.

In a statement, President Mnangagwa said further to his address on the need to accelerate economic reforms that are necessary to stimulate the economy, he has found it necessary to restate government's strong commitment to reducing fiscal imbalances which are the root cause of the many challenges the economy faces.

He said the challenges include cash shortages and the proliferation of foreign exchange parallel market rates which have a negative effect on prices adding that these challenges require government to position the economy on a strong footing by implementing painful but necessary reforms.

The President said these reforms include cutting on government expenditure, increasing efficiency on government delivery systems and fast-tracking reforms of state-owned enterprises, among a host of other measures.

He added that the reforms should be accompanied by a strong and sustainable currency reform system set to follow after the execution of the above reforms.

President Mnangagwa said this is necessary to ensure that any currency reform programme, the government puts in place is effective and causes minimum disruption to business.