Former Finance Minister Tendai Biti has revealed that government will be introducing a new currency this week as promised by current Finance Minister Mthuli Ncube that the country will soon adopt its own currency.
“The regime will this week introduce a new Zimbabwe currency not backed by any reserves and without the context of structural reforms which a prerequisite of currency reform .That move is pure undiluted insanity . An unbanked currency is just the bond note by another name.” Biti said on Monday.
Biti further revealed that while fundamentals are important in currency introduction, it is important for the market to have confidence in the system and current there is no confidence on Mnangagwa’s administration.
“There is no country in the world that has involuntarily dollarized that has ever succeeded in de -dollarizing. Zimbabwe will not be the first . Whilst a currency is about fundamentals, ultimately the most important fundamental is confidence, there is absolutely no trust in this regime
Considering the harm and damage inflicted on this economy by its Central Bank over the years to now, the question to be posed is , does Zimbabwe really need a Central Bank ? In my submission, it can and will do without one.”
Addressing a Town Hall meeting with organized by Global Shapers Community Harare Hub at Celebration Centre in January Minister Ncube said Zimbabwe will adopt its own currency within twelve months.
“We should be close on currency reforms. It will happen by stealth because we can’t. Currency reforms started October 2018 but we didn’t have fiscal discipline in place. We won’t capitulate to the US$ but have currency reforms. We are less the 12 months away from currency reforms.” Mthuli Ncube said then