Reports: #Zimbabwe government suspends use of US Dollar, Bonuses to be paid in Zim Dollars

The temporary suspension of US$ was successful yesterday as the carbinet and parliament wholly supported the ministry of finance and economic development. Five days ago Mr Chinamasa proposed the introduction of local currency in the economy citing that the continued appreciation in value of US$ against other currencies especially of our most trading partners is stiffling economic growth. The continued appreciation of the us$ has made it difficult for local firms to compete regionally because of high cost of production.

The use of US$ have also resulted in closure of companies at an unacceptable rate,this is because most companies are being trapped in liquidity challenges hence no working capital for day to day operation of the business. The recent proposal by RBZ to pursue internal devaluation proved fruitless,for that reason the finance ministry advocated the introduction of local currency with immediate effect. The agreed date for the introduction of local currency is 23 december 2015. The interim name for the local currency will be bond notes and bond coins.

This move will enable the RBZ to resume its duty of controlling the circulation of money in the economy and also implementing a sound monetary policy framework. Asked why the introduction of local currency whilist there was an improved revenue generation of 47% ,the minister argued that it was in figures but the money is not physically there. The new currency will have the US$ equivalent value. This move will ease the shortage of cash in the economy. Banks will start receiving the local currency on 21 December 2015.

The civil servants will start receiving their salaries on Monday in local denominated currency.Their bonuses will be paid as scheduled earlier on starting with uniformed forces receiving their bonuses Monday 21 December,education 4 January and the rest of civil servants 15 January. The use of local currency will make local products cheaper against foreign goods and this will stimulate economic growth.

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4 comments

  1. This is bullshit, there is no such thing, and if you have any pride you will remove this and stop bringing fear to already suffering people.

    Idiots, just chasing after pageviews!!!

  2. This is not making any sense try a better lie

  3. I am pretty sure that this indicates that the are now printing Zim currency…….in a nutshell, issuing guarantees which they don’t have 1. the intention to honour, or 2. the finances to honour.
    Does the Criminal Court in the Hague have the muscle to freeze assets and bank accounts of ZANU-PF and politicians, in it’s signatory countries ? Seems like the route to go.

  4. Where on this planet did you ever learn your Economics …..WTF….The currency will be equivalent to the US dollar and will make local products cheaper against foreign goods????? and what nonsense is this about a sound monetary policy framework…..mxm idiots , have you ever heard about the Ramsey-Cass -Koopmans Model which talks about Liquidity Constraints,Effects of Govt purchases, Behavior of Households & Firms , Bond & Tax finances , Ricardian Equivalence debate

    As if that is not enough ,,how about the Diamond model which reiterates the sentiments on Household behavior , Dynamics of Economy and Possibility of Dynamic Inefficiency

    Please the people of Zimbabwe have suffered enough these past 3 decades at the expense of greedy Ministers who are after looting.

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