Zimbabwe to retain multiple currencies for “foreseeable future”

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By Zimbabwe Investor on September 24, 2013. No Comments

US$20sHARARE (Zimbabwe Investor) – Newly appointed Finance Minister Patrick Chinamasa said Zimbabwe is to retain the multi-currency regime for the foreseeable future as part of measures to ensure financial stability.

Zimbabwe is using the U. S. dollar, South African rand and Botswana pula, among other currencies, in the market after the collapse of the Zimbabwean dollar during the 2008-2009 hyper- inflation.

Chinamasa was credited for introducing the multi-currency regime in his brief tenure as acting finance minister in the first few months of 2009.

“In order to dispel any doubts on the market, I came back home to maintain the multi-currency regime,” Chinamasa said. “It will be with us, it will remain with us for an indefinite period.” media in China quoted him today

Zimbabwe’s economy only started to pick up after the multi- currency regime was adopted and an inclusive government was formed in 2009, after almost a decade of decline, ruining a formerly prosperous country. It is not exactly known as to where the relative growth in the economy is attributed. Some argue that in addition to multi-currency regime, political stability played a huge role.

However, the growth has been slowed since 2011. Before the July 31 elections,the government predicted that the economy would grow by merely 3.4 percent this year. Most analysts argue that SADC should have compelled  Mugabe to work with MDC parties for the good of the economy. Now that Zimbabwe has a single party majority government again, it remains to be seen whether the new Finance Minister will be able to attract the ears of lenders and investors for the good of the economy. Despite the Kimberley Process voting for Marange Diamonds to be sold openly on the international market, Zimbabweans are yet to notice any reasonable benefits from the gems.

A report published by the late Chair of the Parliamentary Committee for Mining, Edward Chindori-Chininga revealed that the treasury had only received $82m of the above $500m recorded sales.