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Harare - Zimbabwe will continue to use the multi-currency system for the foreseeable future, the newly-appointed Finance Mminister Patrick Chinamasa has said.
Speaking at the Zimbabwe Revenue Authority’s (Zimra's) Tax Payer Appreciation Day this week, Chinamasa said the multi-currency regime will remain for an indefinite period.
Zimbabwe has enjoyed a stable economy since the introduction of the system in 2009.
Chinamasa’s statement comes in the wake of a report by the African Development Bank (AfDB) saying that the country’s total bank deposits had declined.
In its August 2013 report, the AfDB said the decline in total bank deposits was driven by a run on deposits in the run-up to general elections.
“Some depositors withdrew their money due to uncertainty regarding the tenure of the multi-currency system following elections,” said the AfDB.
The regional bank said depositors were said to be in fear of the return of the Zimbabwe dollar, in which they lack confidence.
“Generally, the public is against the return of the Zimbabwe dollar before the macroeconomic environment really improves.
“However, the decline in deposits is likely to be temporary, if authorities provide credible guarantees of the continued existence of the multi-currency regime,” said the AfDB.
It is against this background that Chinamasa took it upon himself to assure the nation that the multi-currency system will remain in place.
Speaking at the Zimbabwe Revenue Authority’s (Zimra's) Tax Payer Appreciation Day this week, Chinamasa said the multi-currency regime will remain for an indefinite period.
Zimbabwe has enjoyed a stable economy since the introduction of the system in 2009.
Chinamasa’s statement comes in the wake of a report by the African Development Bank (AfDB) saying that the country’s total bank deposits had declined.
In its August 2013 report, the AfDB said the decline in total bank deposits was driven by a run on deposits in the run-up to general elections.
“Some depositors withdrew their money due to uncertainty regarding the tenure of the multi-currency system following elections,” said the AfDB.
The regional bank said depositors were said to be in fear of the return of the Zimbabwe dollar, in which they lack confidence.
“Generally, the public is against the return of the Zimbabwe dollar before the macroeconomic environment really improves.
“However, the decline in deposits is likely to be temporary, if authorities provide credible guarantees of the continued existence of the multi-currency regime,” said the AfDB.
It is against this background that Chinamasa took it upon himself to assure the nation that the multi-currency system will remain in place.
