Latest News Editor's Choice

Business / Economy

Forget the South African rand - RBZ

by Alice Dube
14 Oct 2016 at 07:06hrs | Views
Reserve Bank of Zimbabwe has again stressed that the country is not adopting the South African rand.

The rand has traditionally been used mostly in Bulawayo and Matabeleland South due to its proximity to South Africa.

Due to cash shortages, some banks especially AgriBank are now giving clients the rand.

However, RBZ deputy governor Kupukile Mlambo said there are slim chances of adopting the rand.

"Pertaining to the adoption of the rand, we need to understand a couple of things.

"One of the things is that you cannot be a member of the common monetary area or rand monetary area unless you have your own currency. So we don't have a currency.

"South Africa prints the rand for the South African market. Their fear is that if they print for the region they have no way of stopping those rand from coming back into South Africa and become inflationary".

Zimbabwe is battling worsening cash crunch as some banks are struggling to disperse cash row clients.

Government is planning to inject bond notes this month but there is massive resistance from the market.

Source - Byo24News