Adopting the US dollar will cause more poverty, the Zim dollar system is better says minister

THE country will continue to use the Zim-dollar as its main currency, as falling back on the much-coverted American greenback will create major economic problems & hurt the poor, Fin minister Mthuli Ncube has reiterated We cannot adopt the United States dollar alone as the official currency,” Ncube told lawmakers during a pre-budget consultation meeting, according to the Harare-based newspaper.

“You were there before and there were queues at banks, huge foreign currency deficits and you had deflation. That was because of the U.S dollar,” he said. “It is not a good idea, and it will be suicidal to do so.”

Local companies have experienced delays in accessing foreign currency at the weekly central bank foreign exchange auction, forcing several to source money on the parallel market. That’s led to a wider spread between the official and parallel market rates over the past two months.

The Zimbabwe dollar officially trades at 93.08 per U.S. dollar, but is readily available at 160 to the dollar on the streets of Harare.

LEAVE A REPLY

Please enter your comment!
Please enter your name here