Mugabe blocked rand adoption by Zimbabwe

Mugabe blocked rand adoption by Zimbabwe
Published: 19 May 2017 (1110 Views)
FORMER Finance minister Tendai Biti has disclosed that President Robert Mugabe in 2010 blocked the use of the South African rand as the official currency, possibly for fear of being politically subservient to his South African counterpart, Jacob Zuma.

Addressing a financial markets conference in Harare yesterday, Biti said Mugabe rejected proposals to adopt the rand way back in July 2010, arguing: "Why should we use another person's currency?"

Ironically, this was at a time Zimbabwe was already using the United States dollar and a basket of other currencies, including the South African rand.

"So I went to my principal on July 10, 2010, Mugabe, and said (I used to call him sekuru) ‘Sekuru (grandpa), I think this (rand adoption) is a good idea', (we used to be good friends) but nationalism came in the way," Biti revealed.

"The simple question from him was: ‘Why should we use another person's currency?' And I said but the United States dollar is another person's currency and nationalism just came in the way.

"Part of our problem is that we have to understand the importance of transitioning from certain values. Nationalism liberated us, but it was never designed to run economies."

Biti, who now leads the opposition People's Democratic Party, was responding to comments by economist and scholar Ashok Chakravarti, who had questioned why the rand was not being adopted as the main currency to solve the country's current cash shortages, amid reports that less than $250 million was currently in circulation.

Zimbabwe has been using a basket of nine currencies since 2009 to stem hyperinflation, with the US dollar being the main currency.

Biti's disclosures somehow vindicate Finance minister Patrick Chinamasa and Reserve Bank of Zimbabwe (RBZ) governor John Mangudya, who both have been accused by analysts and currency watchers of frustrating the use of the rand.

In an interview with State broadcaster ZBC on the eve of his 93rd birthday in February, Mugabe claimed he had no idea why Zimbabweans were not using the rand.

"I don't know why the Ministry of Finance, together with the RBZ, have not wanted to use other currencies. I have asked actually again and again kuti (that) why not euros, why not have yuan … why not have the rand alongside the dollar?

"At least, if we had the euro, I don't think we have sanctions on the euro, but the euro is slightly more expensive than the dollar, but the difference is minimal," he mused then.

Zimbabwe has been battling a cash crisis with analysts and business advocating the use of the rand to ease the shortages.

But Mangudya has been adamant that the rand will not be adopted as the main currency.



- newsday

Tags: Mugabe, Rand, Biti,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

'Learn to appreciate good deeds,' Adv. Mahere told

by Simbarashe Sithole | 21 February 2018 | 171 Views

Pastor fails to pay maintenance

by Staff reporter | 21 February 2018 | 137 Views

Hooker stabs client to death

by Staff reporter | 21 February 2018 | 142 Views

Elizabeth Tsvangirai story: A true mirror of human rights encroachments faced by widows in Zimbabwe

by Patience Sibanda (intern at Zimbabwe Democracy Institute) | 21 February 2018 | 235 Views

'Chamisa now unstoppable'

by Staff reporter | 21 February 2018 | 221 Views

Tshinga Dube wades into 'foreign' labour saga

by Staff reporter | 21 February 2018 | 144 Views

Mnangagwa's govt fails to pay bonuses

by Staff reporter | 21 February 2018 | 87 Views

Zanu-PF MP's son shot

by Staff reporter | 21 February 2018 | 106 Views

Chamisa bemoans violence against party leaders

by Stephen Jakes | 21 February 2018 | 144 Views

Mnangagwa commissions NRZ rolling stock

by Staff reporter | 21 February 2018 | 86 Views

Ban on kombis in CBD slammed

by Staff reporter | 21 February 2018 | 249 Views

Mahamat of supporting a coup government in Zimbabwe

by Staff reporter | 21 February 2018 | 93 Views

President Mugabe's 94th birthday photos

by Staff Reporter | 21 February 2018 | 936 Views

Mugabe feeling 'unloved' on his 94th birthday

by BBC - Brian Hungwe | 21 February 2018 | 152 Views

What peace and reconciliation without truth

by S.V Mabhena | 21 February 2018 | 70 Views

MDC-T splits as Obert Gutu quits MDC-Chamisa

by Staff reporter | 21 February 2018 | 173 Views

US to withdraw MDC-T funding over terror attacks on Khupe?

by Staff reporter | 21 February 2018 | 148 Views

Turning blind eye on violence, root cause of MDC split - Coltart

by Simbarashe Mwandipendaa | 21 February 2018 | 85 Views

PICTURES: Bhalagwe memorial service

by Staff reporter | 21 February 2018 | 71 Views

The Menzisi Dube Foundation Appeal

by Agencies | 21 February 2018 | 50 Views

Billy Graham dies

by BBC | 21 February 2018 | 97 Views

Happy national youth day comrades

by NPP National Youth | 21 February 2018 | 107 Views

Happy Birthday Baba Bona

by Belinda Chowa | 21 February 2018 | 258 Views

WATCH: The moment Khupe was attacked by Chamisa's supporters

by Staff reporter | 21 February 2018 | 147 Views

Zhuwao 'reacts angrily' as AU supports Mnangagwa' - report

by Staff reporter | 21 February 2018 | 92 Views

WATCH: Chamisa supporters called Khupe a dissident

by Staff reporter | 21 February 2018 | 156 Views

Chamisa apologise but tells Khupe to go to Mars

by Staff reporter | 21 February 2018 | 158 Views

The politics of gender and tribe must fall - NPP Youths

by Khulani David Ndlovu | 21 February 2018 | 76 Views

Econet Media's Kwesé and iflix Deepen Partnership

by APO | 21 February 2018 | 101 Views

Khupe attackers were chanting Chamisa slogans

by Simbarashe Sithole | 21 February 2018 | 95 Views

Mujuru in Buhera

by Advocate Gift Nyandoro | 21 February 2018 | 88 Views

Attack on Khupe a Gukurahundist replica

by Mkhululi Zulu | 21 February 2018 | 113 Views

Thank You Zimbabwe - MDC-T

by Luke Tamborinyoka | 21 February 2018 | 189 Views

No lavish 94th birthday celebrations for Mugabe

by Staff reporter | 21 February 2018 | 224 Views

Mnangagwa's emissary humiliated at Tsvangirai burial

by Staff reporetr | 21 February 2018 | 138 Views

Mutambara whip up MDC-T crowd with partisan speech

by Staff reporter | 21 February 2018 | 139 Views

Chamisa invaded Tsvangirai's most private space

by Staff reporter | 21 February 2018 | 163 Views

Kaseke, ministry official clash over Mzembi

by Staff reporter | 21 February 2018 | 96 Views