Zimdollar not returning soon, says Chinamasa

The government says it will not make premature decisions to re-introduce the Zimbabwean dollar as a lot needs to be done.

The Minister of Finance and Economic Development, Cde Patrick Chinamasa told the Zanu PF Manicaland provincial leadership in Mutare that building the country's reserves is a major priority before re-introducing the Zimbabwean dollar.

"There is no need for panic about these bond notes, they are a short term measure to address the liquidity challenge. So to set the record straight, the Zimbabwean dollar is not returning soon.

"Zimbabwe has become the most expensive country in terms of production, causing a decline in exports and an upsurge of imports, hence the cash crisis as the few US dollars are being wiped out of circulation through imports.

"Corruption and false declaration at the country's border posts have also chocked the economy, with many goods that have been banned still finding their way into the country," decried Cde Chinamasa.

The Reserve Bank of Zimbabwe (RBZ) last week announced the introduction of bond notes to curb money  flowing out of the country, as part of the measures to address cash shortages.

The bond notes will be backed by US$200 million Afreximbank loan facility.