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Zimbabwe Cannot Sustain Dollarisation – RBZ Governor


Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya has for the umpteenth time ruled out dollarisation arguing that Zimbabwe has no capacity to do so.

Addressing delegates attending the Chamber of Mines of Zimbabwe (CoMZ) annual conference in Victoria Falls on Thursday, Mangudya urged Zimbabweans to embrace the Zimbabwe dollar saying dollarisation was not only unattainable but would also have negative consequences. He said:

Let’s be resolute to maintain that to go forward. The only country that we have is this country.

My message is that the country cannot sustain itself by using other people’s foreign currency.

So, you need to embrace your own. That’s what it means. That 30% should not drive the other 70%, they should co-exist properly without manipulation.

This year up to the 30th of April, 70% of the exports came from mining. So, you are consistently performing well.

The foreign currency belongs to the exporter because 75% of the money belongs to the export.

I have read that many people are confused that we can now dollarise because of these funds. These funds aren’t ours.

You can’t take it from Zimplats or Unki or Mimosa’s accounts and then we go and dollarise the economy.

We have no capacity to dollarise because the money in the banks is not ours.

It belongs to the exporters so that they can export more. Now people are always confused that this US$11 billion is ours, no it’s not ours

The numbers don’t lie. If you can measure it, you can manage it. Ours is 25% which is supposed to go through the rest of the economy.

That’s what we use for auction, for reserves and for paying debts. That’s what it is.

Some economists, trade unions and opposition political parties have been calling on authorities to dump the Zimbabwe dollar as most shops and service providers are demanding US dollars and using parallel rates for products pegged in the local currency.

Even Government departments and parastatals, such as the Zimbabwe National Roads Administration (ZINARA) and ZESA Holdings, constantly adjusts fees and tariffs to keep up with rising inflation.

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