News / Local
'Zimbabwe to revert to local currency'
13 Oct 2023 at 06:24hrs | Views
President Mnangagwa has declared that Zimbabwe is poised to shift back to employing its local currency as the exclusive legal tender, abolishing the multi-currency system. He underlined the significance of a nation possessing its own currency for development.
Speaking at the 9th CEO Africa Roundtable Conference in Victoria Falls, President Mnangagwa stressed that Zimbabwe needs to take decisive action by adopting a single currency. He recounted the historical context of Zimbabwe's monetary policies, notably the adoption of a mix of foreign currencies in 2009, and highlighted the critical role of a national currency in ensuring sustainable economic growth.
The current arrangement, which permits the usage of foreign currencies such as the US dollar and South African Rand, will continue until December 2025, in accordance with Statutory Instrument (SI) 118A of 2022, titled "Presidential Powers (Temporary Measures) (Amendment of Exchange Control Act) Regulations 2022." These measures are effective throughout the National Development Strategy 1 (2021-2025) (NDS1), Zimbabwe's five-year strategic economic plan.
President Mnangagwa emphasized that no country can progress with multiple currencies coexisting in its economy, reiterating the necessity of having a single national currency. He acknowledged that the transition might entail a temporary period of difficulty but is indispensable for the nation's long-term economic stability.
The Treasury has provided assurance to the market regarding the ongoing use of the local currency and measures to bolster its value, restore consumer purchasing power, and support economic recovery.
In 2009, Zimbabwe initially adopted a multi-currency system, primarily centered around the US dollar, as a strategy to combat hyperinflation. Currently, the nation employs a dual-currency monetary framework, incorporating the US dollar, the South African Rand, and the local currency in its currency basket.
Transitioning to a single national currency can augment economic independence and sovereignty, enabling Zimbabwe to exercise greater control over its monetary policy, manage capital flows, and effectively address economic challenges.
During the Zimbabwe Economic Development Conference (ZEDCON), stakeholders advocated for a transparent currency reform roadmap to address apprehensions within the financial sector as the 2025 deadline approaches.
Speaking at the 9th CEO Africa Roundtable Conference in Victoria Falls, President Mnangagwa stressed that Zimbabwe needs to take decisive action by adopting a single currency. He recounted the historical context of Zimbabwe's monetary policies, notably the adoption of a mix of foreign currencies in 2009, and highlighted the critical role of a national currency in ensuring sustainable economic growth.
The current arrangement, which permits the usage of foreign currencies such as the US dollar and South African Rand, will continue until December 2025, in accordance with Statutory Instrument (SI) 118A of 2022, titled "Presidential Powers (Temporary Measures) (Amendment of Exchange Control Act) Regulations 2022." These measures are effective throughout the National Development Strategy 1 (2021-2025) (NDS1), Zimbabwe's five-year strategic economic plan.
President Mnangagwa emphasized that no country can progress with multiple currencies coexisting in its economy, reiterating the necessity of having a single national currency. He acknowledged that the transition might entail a temporary period of difficulty but is indispensable for the nation's long-term economic stability.
In 2009, Zimbabwe initially adopted a multi-currency system, primarily centered around the US dollar, as a strategy to combat hyperinflation. Currently, the nation employs a dual-currency monetary framework, incorporating the US dollar, the South African Rand, and the local currency in its currency basket.
Transitioning to a single national currency can augment economic independence and sovereignty, enabling Zimbabwe to exercise greater control over its monetary policy, manage capital flows, and effectively address economic challenges.
During the Zimbabwe Economic Development Conference (ZEDCON), stakeholders advocated for a transparent currency reform roadmap to address apprehensions within the financial sector as the 2025 deadline approaches.
Source - southern eye
