Mthuli Ncube says no to full dollarisation

Zim Now Writer

Following Members of Parliament’s push for government to dollarise, Finance and Economic Development Minister Mthuli Ncube says the government will not fully dollarise the economy but will maintain the current multi-currency regime.

MPs were arguing that the Zimbabwe dollar had become too weak, a development they said made the budgetary process difficult.

Ncube responded saying: “We have allowed the USD and ZWD to circulate and be used freely. So, anyone can pay in USD and receive USD. I would not even use the term dollarisation, both the ZWD and USD are our currencies as of now.

Ncube said that there is no issue of over-use of the USD or under-use of the ZWD. “We are using both those currencies and that is a policy that we said we will maintain because of the peculiarity of our situation.

“You will have noticed in the last few weeks or months perhaps that the gap between the official rate and the parallel rate has narrowed,” said the Minister.

The parallel market rate had risen last week from about ZWL$800: US$1 t about ZWL$950: US$1.

Most goods and services in the country are now pegged in US dollars while schools across the country have been allowed to charge fees in foreign currency. Other government services such as acquisition of passports, are also charged in foreign currency.