A Zimbabwe cabinet minister has launched an sharp attack on bond notes saying its wise to use the South African rand.
“I can understand what the government is trying to achieve in terms of inducing liquidity in the market, but the multiple currency basket already has nine currencies including the rand, which I have always submitted is part of the solution to the extent that 70% of our exports go into South Africa or via South Africa, 70% of our imports come from South Africa and 80% of our Diaspora, globally, are resident in South Africa and, therefore, they have an impact on the profile of remittances into Zimbabwe.
“So it just makes absolute sense that we align to a regional currency that favours us to that extent” he said.
According to Mzembi, he has held talks with President Robert Mugabe and RBZ governor John Mangudya about the the rand.
“I have already spoken to President Robert Mugabe and the Reserve Bank governor to say that mine is an exclusive situation, special conditions apply because 70% of my source market is South Africa.
“They (South African tourists) need to be motivated to come and spend in this destination, but unfortunately they are finding Zimbabwe uncompetitive because of the bullish nature of the US dollar against the rand”.
However, this week Mangudya said adopting the South African rand would be a dangerous move as it would worsen the economic chaos.
According to Mangudya conditions of adopting the rand are not conducive.
The rand is freely used in most parts of Matabeleland South and Bulawayo.