Zim piling up gold, diamonds to back new currency: VP

2017-07-29 11:00
Emmerson Mnangagwa. (File: AFP)

Emmerson Mnangagwa. (File: AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Harare - Vice President Emmerson Mnangagwa says the cash-strapped Zimbabwe government is piling up reserves of gold and diamonds to back a new local currency.

But he did not say when the new currency would be introduced.

In November 2016 the central bank introduced "bond notes", bank notes which are tradeable only in Zimbabwe and have no value outside its borders.

Bond notes in short supply

But the bond notes, like the forex Zimbabwe has depended on since the worthless Zimbabwe dollar was abandoned in 2009, are in critically short supply.

“We are building up reserves of gold and diamonds which if they reach a certain level… will then allow us to introduce our own currency that will be backed by those minerals,” Mnangagwa said.

“I am not at liberty to disclose to you the level that we want those minerals to reach before they can back our own currency,” he said, in comments carried Friday by the state-run Herald.

Mining in protected areas

The revelation comes amid reports the government had extended its quest for precious minerals into previously protected areas, including national parks.

Mnangagwa was addressing a meeting in the south-eastern cane-growing town of Chiredzi, where he was questioned on the currency shortages, said the Herald.

Mnangagwa said the only the forex the country was getting was from exports, NGOs, loans, or foreign investment. 

Equipment from Belaras

The Zimbabwe government recently bought equipment from Belarus to excavate conglomerate diamonds in Chiadzwa, in the east of the country, and says it will lift protection status on a million acres of land to boost gold mining by artisanal miners.

The news has alarmed environmentalists as even national parks could be targeted. The Chimanimani Tourist Association said on Facebook it had been told by the environment minister that the stunningly beautiful Chimanimani National Park in the east of the country would not be spared. It said it was working with Tourism Minister Walter Mzembi and local chiefs to keep the mountains protected. 

Read more on:    emmerson mnangagwa  |  zimbabwe  |  southern africa

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/World
 

For the love of Corgis!

WATCH: 35 Corgi's to make your day! If they’re good enough for the Queen of England they’re good enough for us.

 
 

Paws

Can we communicate with our pets?
8 great natural remedies for your pet
Buying a puppy? Don’t get scammed!
WATCH: These funny animal videos will make you LOL!
Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.