As we wait for the introduction of Zimbabwe’s own currency in 12 months’ time, you need to know why it’s taking that long to bring back the infamous Zim Dollar. According to Finance Minister, Mthuli Ncube Zimbabwe should first get its house in order for it to have its own currency.
The Minister said Zimbabwe should first reduce its government expenditure and budget deficit, introduce a monetary policy committee and so forth. Speaking to Bloomberg,Finance Minister Mthuli Ncube said:
A lot needs to be done before the introduction of the Zimbabwean currency, which first of all is fiscal discipline, making sure that we bring the budget deficit into single digits and that runaway Government expenditure is curtailed. Also making sure that there is compliance on the revenue collection front that really deals with that in terms of fiscal discipline. But also, we need to build the micro-institutions for full monetary policy conduct in the sense of introducing a monetary policy committee, making sure that we put in place a framework for inflation targeting but also growth targeting in a way. Externally making sure we can begin to address our arrears in terms of what we owe to other nations, the Bretton institutions included… But fiscal discipline is key and if you noticed what has been happening since October 2018 the premiums in the parallel market have stabilised and this is because of fiscal discipline.
I suppose all these reforms may turn Zimbabwe’s fortunes around, but the issue is; can he implement these measures or is the government willing to implement these measures? I wonder if the currency is ever going to be introduced because these guys are not walking the talk. This government is now known for saying all the good things that Zimbabwe needs to do but it’s not implementing them.