Zimbabwe isn't yet ready for a sole currency, finance chief says

Zimbabwe's Finance Minister Mthuli Ncube said the southern African nation needs to regain access to credit lines before it can adopt the ZiG as its sole currency.

"We need a few things in place" before the nation can have a mono currency, including making progress on restructuring $21 billion in debt, Ncube said. The nation has been locked out of capital markets since 1999 after defaulting on its debt.

"Clearing the arrears would allow us to access balance of payments support," in terms of credit lines to support Zimbabwe's reserve position, deal with demand by importers and defend the currency, Ncube said.

The ZiG, short for Zimbabwe Gold, was introduced in April to replace the dollar as the nation's main transacting currency, after several previous attempts failed.

The new currency has faced setbacks including a 43% devaluation in September and calls for it to be abandoned.

To support the currency the central bank has spent more than $400 million and significantly tightened liquidity.

An International Monetary Fund team is in the country until February 13 to determine whether to place Zimbabwe on a so-called "staff-monitored program," a crucial to for the nation to secure a debt overhaul.