We cannot fear change - Zim's Mnangagwa on currency

accreditation
President of Zimbabwe Emmerson Mnangagwa is during a Russian-Zimbabwean meeting at the Kremlin, in Moscow, in January 2019
President of Zimbabwe Emmerson Mnangagwa is during a Russian-Zimbabwean meeting at the Kremlin, in Moscow, in January 2019

Zimbabwe President Emmerson Mnangagwa has said the situation in the country where others earning US dollars were enjoying stability while those who earn local currency had become "unfair and unsustainable.

In a statement released on Tuesday, Mnangagwa said it had always been clear that for the country's economy to take off, "we need our own currency".

Two-tier economy

He said while the majority earn in the local currency, goods are priced in US dollars, resulting in a two-tier economy.

"Stable and affordable prices for those with access to dollars, while the majority face an unrealistically high cost of living. This is unfair and unsustainable," he said.

He said the introduction of the local dollar was made possible after his government regained "control of our budget, through decreased spending, increased revenues and, for the first time in recent memory, budget surpluses."

'Restoring normalcy'

He said the move to abolish use of foreign currency in local transactions was an "important step in restoring normalcy to our economy".

He said apart from outlawing use of foreign currency, the move would "change very little."

"People will still be paid in RTGS dollar and bond notes, and goods and services will be priced in the same (local) currency," he said.

"Those holding Nostro (forex) accounts will still have access to those accounts in the currency they held."

Mnangagwa added: "We cannot be fearful of change, but must boldly embrace it as we move forward.

"The conditions are in place for Zimbabwe to have its own currency."

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
14.63
+0.9%
Rand - Pound
20.11
-0.0%
Rand - Euro
16.95
-0.0%
Rand - Aus dollar
10.84
-0.0%
Rand - Yen
0.13
+0.0%
Gold
1,767.60
0.0%
Silver
23.32
+0.0%
Palladium
2,075.53
0.0%
Platinum
1,059.00
0.0%
Brent Crude
84.86
+1.0%
Top 40
60,494
+0.2%
All Share
67,029
+0.3%
Resource 10
64,347
-0.1%
Industrial 25
84,819
+0.7%
Financial 15
13,961
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Facebook is facing a fresh crisis after a former employee turned whistle-blower leaked internal company research . Do you still use Facebook?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, the benefits outweigh the risk for me
23% - 97 votes
No, I have deleted it
47% - 197 votes
Yes, but I am considering deleting it
30% - 126 votes
Vote