Speaking in a video published on Youtube by ZBC news, President Emmerson Mnangagwa told people that no country functions well without its own currency. He cited the continuous increase in prices of goods almost overnight and connected the continuous price increases to the use of the parallel market exchange rate in pricing decisions.
He then continued by pointing that in the near future we shall have own currency that will be legal tender. Pointing out that citizens may have their foreign currency but the only acceptable legal tender in shops will be the new currency that people shall be informed about.
For those who are counting this is the third time, an appropriate government official has made mention of the introduction of a new currency. The previous two occasions it was finance minister Professor Mthuli Ncube. The first mention coming before the introduction of the RTGS dollar and the second coming after it.
Mnangagwa’s explanation of the currency problem in the country, of course, ignores some fundamental truths about the reasons foreign currency is required in the nation. This, of course, has more to do with the crowd he was speaking to and the purpose of the speech.
He didn’t shed any detail as to who will tell us about the new currency but this is highly likely to be the RBZ Governor John Mangudya, Mthuli Ncube or both. Mthuli Ncube made mention in a cabinet briefing earlier this week of an upcoming midterm budget statement slated for July. So this may give us more insight into it. We would hover be more likely to get direction towards year end.
The presidents’ remarks will likely mean little to Zimbabweans as they have seen an administration make a shambles of a bond note that was introduced at parity to the US dollar with backing from Afreximbank. The same administration introduced a new currency, RTGS dollar which only four months is battling for dear life on both official and parallel markets. Surely another currency is not what we need.
Unfortunately, your very article does not shed light on the fundamental truths about why we need forego currency (for buying and selling?) As for the loss in value of the rtgs dollar, one would have thought that the intention was for it to find its own true value? One would also have expected the black market rate to have been 1USD:100000 or more by now! As of today I prefer to be given 100rtgs bond than 100 rands or 100 pula for that matter.
Thanks for the feedback Samson. We have spoken many times at length about the currency and the issues around it. So much so that reiterating would perhaps be of diminished benefit to our regular readers. You can read more about our analysis on currency on the links below:
https://startupbiz.co.zw/new-currency-in-12-months-again-mthuli-ncube/
https://startupbiz.co.zw/the-benefits-of-a-local-currency/
https://startupbiz.co.zw/biti-stirs-frenzy-with-new-currency-revelation/
https://startupbiz.co.zw/local-currency-adoption-possibilities/
Good response in rwturn of this matter with real arguments and describing the whole thing concerning that.
What is happening in our dear country is we are not patriotic. We have no idea what it means for our children and grand children &generations to come. We need to support professor Mthuli’s administration of the economy. It does not work over night it requires time. For a country to be in a better financial position it requires its own currency, do people know that by using another countries currency you pay a lot of money, Prof Mthuli and the gvt are not fools but we Zimbabweans stand in their way by selling money on the streets thinking selfishly about ourselves and not our children and grand children, that’s why the country is on its knees. I am not saying the gvt is not corrupt but who is not corrupt, police even nurses and DRs noone gets a place to do nursing or teaching unless you pay 2000 us dollars or more. Econet very corrupt Strive’s business has no intention to help its people but who contributes all that to him poor Zimbabweans and what does he do to them he stabs them at the back. some even say its better to have a white man in the GVT really because he loves why he loves you blackman. if we all come together and give ourself 5 years, kana currency yapinda tobatana toona kuti hazvichinje here inga america yacho yakatoti hamubudirire musina mari nyenyu. Tinoda kushandiswa kuti tibayane pachedu why xd4etwiuowwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww
God has saved us from corona it is mild we have our land those using havasi kufa nenzara vakabata minda vegere mumisha mu maplots vachirima vachigdya vachiguta
zvinotese takati tinoziva nekuti takaenda kuchikoro achatevera mumwe ndiani. vhurai maziso vana vevhu idai ivhu nekuti wakabvamo uchadzokera mo ugere pavhu pfuma iri muvhu asi unoramba mumwe munhu akabata pfuti kukuuraya nekuti wakatora ivhu. asi zvakanzinzi 2001-2002 huya tikupei ivhu makaramba, muchena arikuchemera ivhu remutema iwe mutema tana kuritiza we are brainwashed very washed, we don’t even like our skin some of us, don’ t like our hair we try to emulate someones features in us we paint ourselves. Murume kutoramba mukadzi kuti pfeka weave unondinyadzisa nemufushwa ipapo ano renter kana muchero chaiwo kana dumba kumusha haana. Dr guramatunhu akataura kuti kuna trevor Ncube human hair does not die its alive because of DNA in the hair. its genetic material. follow Dr solomon Guramtunhu. ngatidananei takanaka zvakanyanya tive nerudo rwekuvaka nekuvakana ngatiregerei kuti panosumudzwa musoro tobva tatsika ngatiregei kubvuma kushandiswa kupiwa mari kunzi baya mukoma wako wotobaya nekuti wapiwa mari, mbuya nehanda vakaurayiswa nani nekuda mari asika ndiye waiva mwari wedu vaitisvitsira zvichemo kumusiki nhasi tinochema nhamo kovakuru vedu tinombovafunga here kana history yedu hatidi kuinzwa maveterens edu. kudzimwe dzose pasi rose vanoremekedzwa zvinotinokomborerwa sei
well it is good to have our own currency i trust Prof Mthuli 100%. been long overdue