Mukupe pushes for Zimdollar return

Mukupe pushes for Zimdollar return
Published: 12 January 2019 (143 Views)
Former deputy Finance minister Terence Mukupe, said without reintroducing local currency and having a serious reengagement with the United States of America (USA) the country will continue to suffer.

Posting on his Twitter account, Mukupe said the authorities must make bold decisions to take the country out of this crisis.

"With the twin deficit we have.... Our situation is beyond policy pronouncements... Let's be bold and seriously pursue reintroduction of our own currency backed by currency swap deals with SA and China as well serious and sincere reengagement with America otherwise mmmm hameno."

The sentiments come as economists have called for the bond notes to be demonetised in favour of hard currency borrowed abroad.

Government abandoned the Zimbabwe dollar in 2009 after the currency had been rendered worthless by hyperinflation.

Government is adamant that the bond note  should continue to trade at par with the United States dollar despite the fact that the unit has lost considerable value to the greenback on the parallel market.

As a result, a three-tier pricing system has emerged on the domestic market, with market players pegging their prices in US dollars, bond notes and the Real Time Gross Settlement (RTGS) to reflect rates that would be obtaining on the black market.

With the bond notes failing to hold ground on the black market, economists opine that the country is progressively moving towards unofficial dollarisation.

 Despite the clear and present danger facing the surrogate currency, fiscal authorities are maintaining that the RTGS, bond note and US dollar are at parity.

Finance minister Mthuli Ncube also argues that demonetising the bond note and RTGS balances would be a costly exercise that needs to be budgeted for at a time when Treasury is operating on a shoe-string budget.

This has further worsened distortions in the market, thus fuelling the currency black market.

- dailynews

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

NPRC spells out Gukurahundi strategy

by Staff reportr | 22 July 2019 | 10 Views

ICT experts propose changes to Cyber Bill

by Stafff reporter | 22 July 2019 | 8 Views

'Rogue NGOs worry Mnangagwa's govt'

by Staff reporter | 22 July 2019 | 10 Views

'Masvingo solidly behind Mnangagwa'

by Staff reporter | 22 July 2019 | 7 Views

Manica strike late to denies Bosso maximum points

by Staff reporter | 22 July 2019 | 10 Views

Student loans re-introduced

by Staff reporter | 22 July 2019 | 11 Views

Corrupt passport officials warned

by Staff reporter | 22 July 2019 | 8 Views

'Beware of regime change agents'

by Staff reporter | 22 July 2019 | 9 Views

NRZ refurbishes 10 locomotives, 336 wagons

by Staff reporter | 22 July 2019 | 8 Views

'No fix to illegal forex trade'

by Staff reporter | 22 July 2019 | 10 Views

Zacc probes Lands Commission

by Staff reporter | 22 July 2019 | 10 Views

Zimbabwe: It is time to panic, a little

by Eddie Cross | 22 July 2019 | 9 Views

Govt shilly-shallying threatening Zimdollar sustainability

by Staff reporter | 22 July 2019 | 10 Views

Govt to break Bureau Veritas monopoly on imports inspection

by Staff reporter | 22 July 2019 | 7 Views

Ex-Zanu-PF MP's life in danger

by newzimbabwe | 22 July 2019 | 6 Views

Man jailed 15 years for raping granny (59)

by Staff reporter | 22 July 2019 | 7 Views

Chamisa's MDC raps Zec

by Staff reporter | 22 July 2019 | 3 Views

Zinara faces Parliament grilling over operations

by Staff reporter | 22 July 2019 | 4 Views

'Separate local government election from national elections'

by Staff reporter | 22 July 2019 | 3 Views

Jehovah's Witnesses in historic Gweru convention

by Staff reporter | 22 July 2019 | 4 Views

'BCC has no HIV viral load testing machines'

by Staff reporter | 22 July 2019 | 2 Views

'No freedom after expression in Africa'

by Staff reporter | 22 July 2019 | 5 Views

Graft watchdog challenges new Zacc commissioners

by Staff reporter | 22 July 2019 | 5 Views

Zimbabwe's social protection lack co-ordination, under-financed

by Staff reporter | 22 July 2019 | 5 Views

Trump focuses on Mnangagwa

by ZimLive | 22 July 2019 | 10 Views

Prophet Makandiwa mansion raises eyebrows

by Staff Reporter | 22 July 2019 | 156 Views

Exposed Ramaphosa reacts to Public Protector's report

by Staff Reporter | 22 July 2019 | 75 Views

UCE graduation ceremony

by Dr. A. Luthuli | 22 July 2019 | 60 Views

ZERA looking to remote fuel monitoring system

by Staff reporter | 22 July 2019 | 62 Views

The corruption commission

by Clemen Moyo | 22 July 2019 | 74 Views

Government speaks on Auxilia Mnangagwa - Army fallout

by Mandla Ndlovu | 21 July 2019 | 230 Views

Chinamasa's world up in flames

by Mandla Ndlovu | 21 July 2019 | 208 Views

Teachers to shutdown schools on Monday

by Mandla Ndlovu | 21 July 2019 | 176 Views

Zimbabwe govt licenses companies for riverbank mining

by Staff Reporter | 21 July 2019 | 105 Views