News / National
Chinese themselves are not trading in their own currency - Makoni
01 Dec 2011 at 10:31hrs | Views
Former Finance minister Simba Makoni believes the country should not consider using the Chinese Yuan as an alternative currency as proposed by RBZ governor Gideon Gono, in view of the challenges faced by the US$.
Makoni said despite China being the second largest economy, the Chinese themselves were not trading in their own currency
Makoni attacked Biti whom he said is clueless about the budget.
The failure by the 2012 National Budget to come up with solutions to deal with external debt shows the inclusive government has no strategy in place, former Finance minister Simba Makoni said.
Makoni, also said lack of provision of finance for major infrastructure projects like Kunzwi Dam and Zambezi Matabeleland Water Project was worrisome.
"The minister's silence shows he had no plan to deal with our national debt, but I am sure our creditors are waiting to hear from us," said Makoni.
"There was no discussion of any engagements with creditors on current debt and future financing."
Zimbabwe's national debt is said to be more than $7 billion, outstripping the country's GDP which is estimated at just over $6 billion.
The external debt has continued to grow as a result of new payment arrears, interest and penalty charges.
Makoni said upward adjustments of mining royalties will increase the cost of doing business and would have a negative effect on the performance of the economy.
Makoni said while the budget projected economic growth there was no explanation or justification of the assumptions to raise confidence in the feasibility in the growth of mining of 11,6% in 2012 yet mining was projected to spur GDP growth and job creation in 2012.
"We can look East, North or South. However, we cannot get Zimbabwe working again if we continue on the path to self-destruction," said Makoni.
Makoni said despite China being the second largest economy, the Chinese themselves were not trading in their own currency
Makoni attacked Biti whom he said is clueless about the budget.
The failure by the 2012 National Budget to come up with solutions to deal with external debt shows the inclusive government has no strategy in place, former Finance minister Simba Makoni said.
Makoni, also said lack of provision of finance for major infrastructure projects like Kunzwi Dam and Zambezi Matabeleland Water Project was worrisome.
"The minister's silence shows he had no plan to deal with our national debt, but I am sure our creditors are waiting to hear from us," said Makoni.
Zimbabwe's national debt is said to be more than $7 billion, outstripping the country's GDP which is estimated at just over $6 billion.
The external debt has continued to grow as a result of new payment arrears, interest and penalty charges.
Makoni said upward adjustments of mining royalties will increase the cost of doing business and would have a negative effect on the performance of the economy.
Makoni said while the budget projected economic growth there was no explanation or justification of the assumptions to raise confidence in the feasibility in the growth of mining of 11,6% in 2012 yet mining was projected to spur GDP growth and job creation in 2012.
"We can look East, North or South. However, we cannot get Zimbabwe working again if we continue on the path to self-destruction," said Makoni.
Source - NewsDay
