Fin24

Zanu PF calls for return of Zim dollar

2012-12-10 19:45

Gweru - Zanu PF is pushing for the re-introduction of the Zimbabwe dollar as a way of easing the current liquidity crisis.

The party’s just-ended 13th National People’s Conference resolved to instruct government to work out modalities for the re-introduction of domestic currency alongside the multi-currency system in order to enable people to carry out transactions.

The multi-currency term was extended to 2013 and beyond from its initial expiry date December 31 2012.

The party will also spearhead the adoption of currencies of the Brics countries and other emerging economics as legal tender in Zimbabwe alongside the US dollar.

Options have been thrown around about the route the currency system in this country should take. Firstly that Zimbabwe re-introduces a local currency that is linked to the South African rand through the Multilateral Monetary Area, which also links South Africa, Lesotho, Swaziland and Namibia.

This means that Zimbabwe would revert to its own local dollar but the exchange rate would be on parity with the rand. Analysts say that the MMA would be the best option available because Zimbabwe largely depends on the South African economy in terms of imports, exports and the volume of traffic which includes the movement of goods, people and skills transfer. This system would make it easier to shift to the SADC single currency.

Secondly that the country pushes for full dollarisation where the US dollar is adopted as the currency of the nation. Economists, however, argue that the Zimbabwe economy is remotely linked to the US economy, therefore dollarisation might not be the best option. The US dollar is the commonly used currency.

Thirdly, that there is the introduction of the gold-backed standard. The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold.

Lastly, there have been calls for the use of the Chinese Yuan as there were arguments that Zimbabwe’s economic recovery was at the mercy of the US dollar, which was facing threats from the global financial crisis. The move would also consolidate the country’s Look East policy.

The party also resolved to call upon government to set a Zimbabwe Mineral Exchange as a vehicle to ensure that there is no external listing of Zimbabwe’s mineral assets.

In the past there have been calls for all miners to have a primary listing on the Zimbabwe Stock Exchange guided by the policy that the entire value chain should be indigenised. Amendments to the Mines & Minerals Act were supposed to carry the requirements. However the indigenisation ministry is planning to open a stock exchange which will trade the shares that were ceded to the National Indigenisation and Economic Empowerment Fund (NIEEF).
 
The conference resolved that all export receipts should be banked in Zimbabwe with national local financial institutions.

- Sharara is a correspondent of Fin24 in Zimbabwe

Comments
  • squeegee.pilot - 2012-12-10 20:15

    More chaos to follow... watch this space...

  • warren.carne.9 - 2012-12-10 20:23

    I guess they must have run out of toilet paper then.

  • Pulverturm - 2012-12-10 20:32

    I just got back from a business trip to Harare. Most businessmen and women attribute their current success to the dollarisation. It has brought a bit of stability in a very volatile economy. I personally think that if they use any other currency, why not the Rand? It would make a lot of sense since almost everything you consume in Zim is imported from South Africa. It was a big rip off though, a Gin and Tonic there costs $9 USD! Ridiculous!

  • frank.crane.180 - 2012-12-10 20:48

    Can't its all been used as toilet paper.

  • Montagnes.Bleues - 2012-12-10 21:27

    Zimbo's have certainly perfected theft more than any other nation in the world! This scheme should rip off many for untold amounts AGAIN. and what's the point in any event - SA is printing Randela's at a rate faster than any Zimbo warvet of the prime old age of 14 years old scratching furiously in the Marenge diamond dust fields, these days. How else can the ANC-PF inner core carry their debt burdens from so grand corruption. any giggles or snorts zuma with your little india consortium?

  • mehluli.mncube.3 - 2012-12-10 23:12

    i thnk its nt fair wat zanu pf iz doing nw thy hve colected al foreign curence nw thy wnt 2 stp it u wil b shrt wth mney again same lyk 2003

  • dwayne.dick.5 - 2012-12-11 05:46

    If it was up to me, bring back the gold standard, make it legal for people to own gold an create a currency that is based on the price of gold and why can't we trade with gold coins.

  • douglas.reid.921 - 2012-12-11 06:06

    When you have your own currency and run out of money all you do is fire up the printing press and print more, when you print too much your currency goes to pot. ZanuPF problem is they can't print US dollars. Their greed is insatiable, much like some of our leaders only ours need more women too.

      J.Stephen.Whiteley - 2012-12-11 06:33

      Precisely.

      gordon.turner.37 - 2012-12-11 08:06

      Except that is exactly what the us has done in case you haven't noticed.

  • russell.l.tait - 2012-12-11 06:29

    Mugabe, the Ghandi of Harare.HAhahahaha.!

  • FinalJustice - 2012-12-11 06:38

    While they're at it, I think these Zimbabwean leaders should have their IQ's reverted to some other currency as well. We simply can't accommodate 0.000 000 000 1 on the current scale ...

  • J.Stephen.Whiteley - 2012-12-11 06:42

    A nation's independence today depends on its currency, not on its army. If it uses another country's currency it is at the trading and cultural mercy of that country. That is no bad thing if that is the wish of its population. Unfortunately the population is equally divided during the transition, as also in Greece, the Palestinian West Bank, and in our own country if we don't stop wasteful spending

  • chumachienda - 2012-12-11 07:34

    So Zanu Pf stil wants to fleece it's people...wat about job creation for the youth.Shame on you Mugabe and ur bunch of thieves

  • themba.thwala.775 - 2012-12-11 17:14

    Can the Zimbos who are overcrowding us inb SA also remember their home and go help Morgan Tsvangrai to unseat that octogenarian madman too, please!

  • freddy.vanwijk - 2012-12-11 18:15

    South Africa could actually manufacture the "Zim Dollar On 'N Roll" toilet paper by printing the letters "RSA". It means roll slowly away. LOL.

  • steven.m.armour - 2012-12-12 06:29

    Another bunch of clowns.Rather use toilet paper,worth more.

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