News / National
Zim dollar fears allayed
10 May 2016 at 07:17hrs | Views
THE Ministry of Finance and Economic Development has reassured the nation that the government is not re-introducing the Zimbabwean dollar through the bond notes.
The Governor of the Reserve Bank of Zimbabwe, John Mangudya, last week announced that they would be introducing bond notes, which are backed by a $200 million loan facility extended by the Afrexim Bank, as part of a raft of measures to ease the liquidity crunch that has hit the economy.
Speaking at an Interim Poverty Reduction Strategy Paper (I-PRSP) consultation meeting in Gweru yesterday, the Permanent Secretary in the Ministry of Finance and Economic Development, Willard Manungo, said the country was not yet ready to transact in its own currency.
He assured participants that the government would not prematurely introduce the local currency as that would derail efforts to attract foreign direct investment.
"There are fears of the return of the Zimbabwean dollar especially after the announcement by the Reserve Bank (of Zimbabwe) governor.
"There are concerns that this will take us to 2008 and this is what I want to reassure you that as the Honourable Minister (of Finance and Economic Development, Patrick Chinamasa) and the Governor himself have said, we're not yet ready for a return of the Zimbabwean dollar," said Manungo.
"You aren't going to find an irresponsibility on the part of government in terms of dealing with this situation. So we're quiet sensitive to what has happened and what we want to see in this country is increased investment. Issues of investor confidence, community confidence and household confidence are at the centre of everything we're doing".
Turning to the I-PRSP meeting, which is at consultative stage and is targeting at reducing poverty in the next two years in line with the Sustainable Development goals, Manungo said there is a need for social protection and curbing of corruption if poverty is to be eradicated.
The chairperson of the I-PRSP, Jesimen Chipika, said consultations, which have been held in Harare, will be done in all the country's provinces and selected districts.
The I-PRSP will run until 2018 and a new programme to reduce the country's poverty levels will be formulated thereafter. It will run for the next five years.
Today consultations will be held in Bulawayo.
The Governor of the Reserve Bank of Zimbabwe, John Mangudya, last week announced that they would be introducing bond notes, which are backed by a $200 million loan facility extended by the Afrexim Bank, as part of a raft of measures to ease the liquidity crunch that has hit the economy.
Speaking at an Interim Poverty Reduction Strategy Paper (I-PRSP) consultation meeting in Gweru yesterday, the Permanent Secretary in the Ministry of Finance and Economic Development, Willard Manungo, said the country was not yet ready to transact in its own currency.
He assured participants that the government would not prematurely introduce the local currency as that would derail efforts to attract foreign direct investment.
"There are fears of the return of the Zimbabwean dollar especially after the announcement by the Reserve Bank (of Zimbabwe) governor.
"You aren't going to find an irresponsibility on the part of government in terms of dealing with this situation. So we're quiet sensitive to what has happened and what we want to see in this country is increased investment. Issues of investor confidence, community confidence and household confidence are at the centre of everything we're doing".
Turning to the I-PRSP meeting, which is at consultative stage and is targeting at reducing poverty in the next two years in line with the Sustainable Development goals, Manungo said there is a need for social protection and curbing of corruption if poverty is to be eradicated.
The chairperson of the I-PRSP, Jesimen Chipika, said consultations, which have been held in Harare, will be done in all the country's provinces and selected districts.
The I-PRSP will run until 2018 and a new programme to reduce the country's poverty levels will be formulated thereafter. It will run for the next five years.
Today consultations will be held in Bulawayo.
Source - the herald
