President Emmerson Mnangagwa is in Maputo, Mozambique attending the US-Africa Business Summit. He spoke to Bloomberg on the sidelines of the summit.
In that interview, the president again talked about introducing a new currency in Zimbabwe within months. He said:
It is necessary that we have our own currency. I have faith that we’ll achieve that even before the end of the year or by the first quarter of next year.
The reason
Sometimes President Mnangagwa innocently says things that make people question whether he appreciates important issues. Here’s a quote from The Herald:
I am not aware of any country which has no currency of its own, but that is not my field – I am a lawyer – but I am told that except for Zimbabwe I haven’t been told of another country which doesn’t have its own currency. Even poor countries have currencies from what I hear, so we intend to introduce our own
This is a disappointing motivation for the head of state to give for something so significant.
Faith in Mthuli Ncube
President Mnangagwa’s strategy for the economy seems to be: trust Finance Minister Mthuli Ncube:
I’ve been in government for 38 years as minister and I can’t remember when you ever had a budget surplus. Now, this young man has been able to achieve a budget surplus in less than eight months. So it tells me that what he tells me is possibly true on these issues.
Nothing wrong with that trust actually. He appointed him so it’s important that he trusts him and give him room to work. The hope though is that the president has delegated authority to his minister and not abdicated responsibility for the economy altogether. Well the only other ‘concerning thing’ is that he calls a 56 year old man a young man.
Looks like this happened sooner than expected. Effective 24 June 2019, the Zim dollar is back
Did you know you can easily keep up with the rapidly changing exchange rates on WhatsApp? You just send the word Rate to the Techzim Market number: 0719696102. Or use this shortcut link: http://wa.me/263719696102?text=Rate
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56 comments
It is useless to introduce a new currency you already failed to do why try again
For a statement to talk of a new currency with really nothing to back it is worrying. Or is there something I am missing.
Viva President E. D. Mnangagwa
when they introduce the new currency
Great job ED…
What caused it to cease, have you cleared that last it fall again
USD will not work and has never worked . . . it will never be a permanent solution for a country like Zim where imports have always been more than exports . . . even with zanu gone usd will never work . .. howver a new currency with the current thieves in government will also lead back to hyperinflation . . in my view this is still better than usd
true but the issue at hand is that there is need for a STABLE TRUSTWORTHY CURRENCY. and no without firing mangudya removing exchange controls and opening up the interbank market nothing will work no matter how hard you try. cz at the end whatr sensible person after losing money in bond note conversion and export re tensions will put up money so that they see a return afgter 24months+. the investoras we et will be in mining(with no value addtion) and primary sectors that have an easy exit.
Zvigochinja chii? 4 mnths ago u introduced rtgs zvakadii
This is vodoo economics because the economic fundamentals are totally wrong at the moment. the lowest hanging fruit is agriculture yet its in shambles at the moment. How can a country which used to be the bread basket of Africa import wheat and maize . Its a clear sign that something is very wrong. There is no production to talk about in industry as companies are closing. Mining is in the doldrums and there is a lot of gold and other precious minerals being smuggled out of the country. Corruption is rampant and the list goes on and on. We are doomed unless key issues are addressed and not introducing on currency which all of us don’
t have confidence in.
Old man you just don’t know what you are doing or what you want .If you had the country at heart you would have resigned way back. Do you think that new currency will grow and support itself, stop being mad
Another clown statement from a clueless idiot… But don’t dispair, we are surrounded by so many other incompetent “leaders” in Africa.. Something we have in abundance in the dark continent.. 😥😥😥
I personally would appreciate the new currency theory but my thoughts are still hung up on the industrial situation of Zim…what’s the plan on the CO.s that our current president shredded to pieces the likes of zisco, the mines,the farms he collected to himself maybe by greediness. Even if we had the new currency what are we going to use it for…its not the currency that we need most. Its a functional primary-tertiary industry…I’m not moved Mr president by your ambitions to win our hearts at what “you think” is our sole source of pain…truth is this haunted skull dotted industry has been forever a blow that we die to resurrect from.
Surely he does not know what currency is. Only if he knew he would be talking about real deals. Not some papers
Ctrl+P, Ctrl+P, Ctrl+P, Ctrl+P, Ctrl+P, Ctrl+P, Ctrl+P…
That’s where this game is gonna take us back to. At least we’ve been given a small heads up so we can start stuffing mattresses (a sock in my case) with all the green we can find before ZD-Day!
My concern is that after introducing the so called own currency, the exchange rate with your USD bank accounts will be one to one at the beginning thus the Reserve Bank of Zimbabwe will steal real money from people’s accounts as they did before. Please be aware!
Conerned citizen
I am disappointed by the current thinking amongst Zimbabweans. We don’t want to move forward. The politics is just toxic. That is why we have this situation. Let’s learn to be one and move forward. We have too much mistrust and hatred amongst ourselves.
Mese vanopikisana neurongwa wemutungamiriri hamuna zvamunoziva vanhu veopposition kutonga kunobva kuna mwari kwete kushora musina kana pokurara vana tsuro pamberi na ed
Mese vanopikisana neurongwa wemutungamiriri hamuna zvamunoziva vanhu veopposition kutonga kunobva kuna mwari kwete kushora musina kana pokurara vana tsuro pamberi na ed chakanaka chakanaka inga rwendo rwacho tave kutsvika wani
are some people really against the introduction of the currency or jus that it’s being introduced by ED….? if it was Chamisa jus wonder if you were gonna be saying the same….
Papamberi ne zim dollar pamberi na ED anosvora go hell
I started sending money to Zimbabwe in 1995 when I met my Zimbabwean wife and I personally helped business to move their money out of Zimbabwe through the black marketeers so if whosoever is running Zimbabwe thinks that their own currency is the answer then they are years behind the thinking of the people who have real power
I personally say Zimbabwe needs to have a running system whereby the Agriculture.mining.industry must be working full time producing something to move the economy.printing money u can print day and night its valueless.the money which the president wish to have need a power.the power comes from production.exports and inports is another way to bring foreign currents therefor making thecurrency strong.Mr presdent withdue respespect u need to visit yor economics well.u are far from understanding economy.white people we need them.
Yaah
I think the goverment of zimbabwe need to open free trade with south africa since tbey are not producing anything at the moment zimra must just allow people to cross border and buy basic commodities .eg a can of baked beans cost less than R12 in south africa but because of zimra it cost nearly R287.00 in Harare whereas if it was free trade they were going to sell for R20 for example .well educated zimbabwe but failing to manage economy its pointless better less educated south african and think better for the future of SA
And just how many times does a currency need to be introduced when zimbabwe has been in the same position for years since the second currency that was introduced.(or atleast the first). Fools will remain in the same position and their houses will fall to dust. Only the wise win. Smh
Fix the country first!!
Someone in the government for 38yrs he must also corrupt Zimbabwe need a someone who can transform the country not an old man, with same mentality
Zvenyika yedu zvakatooma….
The ED era started well. Soldiers, Zanu PF and MDC embraced each other at the fall of Mugabe government. Free campaigns, free voting, and free observer mission participation. ED came as a darling of the international community on the death certificate of a Mugabe government. This election was an opportunity Zimbabwe was supposed to end its isolation. From a militarized Mugabe era to a new era of great democracy and freedom. Zanu PF had re-found its path. A new dispensation! Zimbabwe was open for business. We all thought! I had heard ED’s vision for a new Zimbabwe. It was brilliant, brilliant to the extent of making Jonathan Moyo and Patrick Zhuwawo angry. In the run up to elections, ED worked 24/7 to change the culture and image of Zimbabwe. He engaged the international community, got promises from investors. Suddenly, things went terribly wrong! What went wrong? Problems started with ZEC’s unsteady utterances and unsolid preparations. Things also went bad with the way ZEC officials conducted themselves and announced results. The international community was watching. Suspicion started. And things went very terribly wrong with the August 1 killings. Yes demonstrators could have been violent, but was it necessary to deploy the army? Even if one was seen setting cars on fire, did he/she deserve to die? In the full glare of the international community six lives were lost following a brutal crackdown by the military. In the full glare of international observers, police invaded an MDC press conference! The government propaganda machinery got it all wrong. Mixed orders. Mixed commands! All the effort by ED to engage the world, to change Zimbabwe’s image, to woo investors, to open Zimbabwe for business came crumbling down like a ton of bricks! The dawn of a new Zimbabwe became the dusk of an unwanted chaotic Zimbabwe in a split of a second. The handling of the January 12-17 demonstrations was a nail in Zimbabwe’s coffin. Zimbabwe was doomed. ED changed his approach! It is now politics of ED government survival! We can describe the failure of our government by cosmetic vocabulary…’the pain of austerity measures’, …’from the pain of a mother in labour comes a bouncing baby’…etc. We cannot tell the people to abandon cars and go for bicycles because there is no fuel while we drive the ML63s….we cannot tell people to eat porridge for breakfast because they is no bread while we have bacon and eggs for breakfast….we cannot pretend to love Zimbabwe when we fly outside the country for treatment using public funds while the poor die in the death camps the drugless Harare hospital has become. We cannot be the party peripherals for toyi-toyi and RTGS while some party gurus line up their pockets with real money. No! No! No!
It seems the current president of zimbabwe and his team do not have the solution to the country’s economic woes.Printing worthless currency the way and manner Mugabe did some years ago will not do the people of zimbabwe any good rather you end up encouraging hyperinflation thereby causing more suffering for the people. ED pls go back to the drawing board and do the needful.The people Of ZB should look for a more younger president to pilot the affairs of the country and do away with these old myopic half wits who do not have any reasonable thing to offer.
I was in Harare a fwe days ago. Mnangagwa is doing a good job for sure.Afcause disunity is failing the country. He has cleaned Harare and continues to repair it. Zupco is back. Its slow but I think Zimbabwe will rise again.
Nkata is blind hake, but iwe regular uri imbwa yemunhu. You’re the kind of rubbish we don’t need in this country
Kkkkkkkkkk iweka , waguta nyemba nhy
Let the country be a museum once and for all,and those who are willing to adopt Zimbambeans adopt them peacefully.
Let the country be a museum once and for all,and those who are willing to adopt Zimbabweans adopt them peacefully.
If you are in the kingdom Of God whatever is going on in our country doesn’t affect you because God will be in control. All you need to do is Pray!
Silly,naive and irresponsible.
The ONLY advantage of the dollar in Zimbabwe is price stability. However, since dollarizing, Zimbabwean industry has HALVED its production. And since dollarizing, the government’s foreign currency reserves have fallen drastically.
It is imperative that Zimbabwe adopts its own currency once more. Follow this thought process:
1. To develop, Zimbabwe needs to invest massively in useful infrastructure projects.
2. However, due to crippling shortages in foreign currency, it can’t finance these projects.
3. To raise foreign currency stocks, Zimbabwe must stop importing so much (which depletes forex reserves) and become a net exporter.
4. With the dollar, Zimbabwe’s exports are uncompetitive.
5. With its own currency, Zimbabwe will be able to transition to an exporting economy, raise foreign currency stocks, invest in its infrastructure, and climb out of the deep hole in which it has stagnated for the last two decades.
The only way for Zimbabwe to develop is to transition to an exporting economy using its own currency. Dollarization offers short-term stability, but kills productivity in the long run, and accrues government debt.
Hooefully it’s now clear which policy leads to development.
thank you for the most objective response . . . its sad we do not have real analysis in zim.In 2009 when we dollarised a lot of companies shut down.I was a database administrator then and i literally pulled reports monthly of companies that had closed down and could not afford the dollarisation transition.Our company that provided software services lost close to 750 clients mostly from the graniteside industrial area and bulawayo.And these are companies that employed a lot of people.This is over a space of 1 year from April 2009 to may 2010 when i joined another company.Some of the big companies were to close later eg lion match and reckitt benkiser.
the people who make a lot of noise that dollarisation is good are those that had office jobs during that period and got monthly salaries and sadly they are the loudest.I was earning USD then and was more than happy to get the usd on my atm ,reality is most of this money was exported buying stuff from SA etc noone thought or cared to analyse the impact on the local market especially manufacturing.The rural populace which is the majority was severely affected and the industrial base shrinked drastically.Dollarisation only benefited a few and it was drastic.
This analysis is really Zimbabwe will be good again ,no country could prosper using other countries money,we just need to be really and avoid giving any impression that usd is answer to our economy challenges
your analysis is not holistic. Did you analyse the impact of moving from the ZIM dollar to the USD. Some companies never recovered from that lose alone.Did you analyse that impact of government (51/49)% it had on these companies. Did you analyse the wanton expenditure by the government and the tax bands that prevailed in Zim Dollar visa eve the USD.
There are countries using the multicurrency e.g. Namibia either you can he the local currency or rand at 1 is to 1.
last but not least if l may ask, “what do you call our bond”? Technically its a currency because it’s trading on the market. Why is it no sprucing us up or simply put, why is it not working. If you get the answer why it is not working and fix those fundamental basics then you will be surprised seeing the jigsaw puzzle fitting in so well so easily.
The currency is not the one that fixes the economy is but good economic and political policies do.
I agree with this notion. there are lot of factors that comes into play like most policies adopted by our gvt. Having our currency without a viable industry will not work. we basically do not manufacture anything that adds value to the economy, so as long as we import most of the things we need this currency of our own will not get us anywhere.It is merely adding on to gvt expenditure and contribute to further inflation.
Correct. We need no us$ in Zim because we abused it before. It’s easy to extenalise us$. We need to manage our exports properly, gold diamonds, tobacco, platinum chrome etc. All this revenue should be used properly. We should aim to industrialise full-time. Botswana is doing well despite reliance on diamond beef and tourism.
adopt cryptocurrency bitcoins n and Bitcoin cash
I hope this is something genuine and no just trying to bring a currency through because our current situation is spiralling out of control.
Oakioa
I agree with having our own currency but what about confidence issues?As long as the people are not confident in the new currency,it will lose value the second it gets introduced into the mainstream economy.
For real. If there is nothing backing this currency apart from ‘our neighbours have their own’ then this will fall flat, AGAIN!
So Regular Zimbabwean brags about his intelligent tribe.So the Shonas are more educated than Ndebeles so wwhat.For 4close to 40 years Zim has been ruled by one tribe Shonas look what they have done with their education.The prob is nnot Zanu Pf.Its the Shona tribe.Even Chamisa if given a chance will make things worse.Look at Sa in 25 years Mandela was Xhosa Mbeki Xhosa Motlanthe Suthu,Zuma Zulu Ramaphosa is Venda
African haaaa aaaa this is serious. I am shona but i live Ndebele. we are one people.
stop hating other tribes
African haaaa aaaa this is serious. I am shona but i love Ndebele. we are one people.
stop hating other tribes
If Mnangagwa had any vision he would let Zim become the first country to adopt Bitcoin as the national currency. The problem is, he’s so out of touch that he’s probably never heard of it. More than a new currency, Zimbabwe needs new government.
I don’t think Zimbabwe needs new currency instead it requires a new government. New currency won’t do good unless n until we have new pple managing the country.
My question is. Are we not using local currency currently? I understand most of the ppple in zim use rtgs n a few elite group (zanu politicians) are using usd. So wats the logic here. Introducing a new local currency on top of another local currency????. I m not an economist but I understand these guys vagumirwa. Ndokunonzi kugumirwa uku. Nkata n anonymous Muri mat**o embudzi including anyone on earth who supports zanu. Mwese Muri mat**vi.
Kaserera naMupini Muri mipini yevanhu