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Gradual De-Dollarisation Well Underway - Mthuli

7 months agoFri, 23 Aug 2024 09:22:53 GMT
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Gradual De-Dollarisation Well Underway - Mthuli

The Government says a phased de-dollarisation programme is underway, emphasizing that the re-introduction of a domestic currency is crucial for economic recovery.

De-dollarization refers to the process of reducing the reliance on the US dollar and other foreign currencies within an economy and transitioning towards increased use of the local or national currency.

This often involves a combination of policy measures, market-based incentives, and public awareness campaigns.

Presenting the 2024 Mid-Term Budget Review in Harare, Finance, Economic Development and Investment Promotion Minister Mthuli Ncube declared that the de-dollarization process is “well underway” and aimed at creating a “mono-currency regime” backed by a stable local currency. Said Ncube (via Business Weekly):

The phased de-dollarisation programme is well underway and seeks to re-establish a mono-currency regime, backed by a domestic currency that can spur domestic production and boost exports by making local products more competitive in international markets.

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Sustaining the stability in the medium-to-long term will require consistency in the implementation of policy reforms, effective management of liquidity injections into the market, as well as, foreign currency generation and supply to the economy.

Furthermore, confidence-building measures will be instituted and clearly communicated to the market, in order to upscale trust, acceptance and use of the domestic currency.

Ncube said the government will adopt a pragmatic and market-oriented approach to de-dollarisation, aimed at mitigating negative perceptions and adverse expectations that have undermined policy effectiveness in the past.

Regarding the domestic currency, Ncube stated that an optimum quantity of ZiG notes and coins will be maintained at all times.

This balance, he explained, is crucial to provide transactional convenience while preserving the store-of-value properties of the local currency.

Beyond the focus on currency stabilisation, Ncube outlined a broader macroeconomic strategy that includes restructuring the national debt, tightening monetary policy, and boosting domestic revenue collection. He said:

Restructuring the national debt to reduce servicing costs and alignment to Budget capacity; Effectively managing liquidity injections into the market through the Liquidity Management Committee; Following up on measures to strengthen the demand and use of domestic currency by Government, the corporate world and the general public; Progressively switching the foreign and local currency mix in the economy, as part of the de-dollarisation strategy…

Fiscal consolidation measures, including domestic revenue mobilisation and asset disposal to ensure sustainable fiscal deficit financing and avoidance of the inflationary and self-defeating recourse to the central bank overdraft facility will be employed.

The success of Zimbabwe’s de-dollarisation programme will ultimately hinge on the government’s ability to implement consistent policies, restore public confidence, and address the underlying economic challenges, according to economists.

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36 Comments

chaibva chaora · 7 months ago
Hapana hapana
Anonymous · 7 months ago
Oh Mthuli, look around you, the country is awash with American dollars, nobody wants your currency. You are not trusted.
Anonymous · 7 months ago
Respect vote yevanhu and everything else will fall in place
hoy · 7 months ago
well props we in the right path but alas with corruption hmmm pakaip . the zig plan is solid but the players in the plan
Anonymous · 7 months ago
until and when every citizen of Zimbabwe can't access freely and international currency from the bank for any purpose,to pay for imports,pay for machinery, pay for external health care,pay for services etc,on a day to day basis, just like all our neighbouring countries,and abroad, zig can not work. forex in the bank mostly have been given to big players in industry and commerce. all new aspiring entrepreneurs can not have growth due to not receiving forex in the banks the zim industry will never grow at all. everyone should access forex freely.
1
Anonymous · 7 months ago
💯 correct....upsolutely 0 chance. please spare us the agony!!!
Anonymous · 7 months ago
Zimbabwe is open for business, as a country, we are in the right track.
mujolo and above · 7 months ago
keep on trying man one day we win
Anonymous · 7 months ago
You can strengthen your corruption through massive looting and no economic revival is expected as long as toy around with the basics..
Boozer · 7 months ago
Problem ndeyekuti muri kuramba muchiimba hondo, hondo, hondo, misoro yenyu yangove nenoise yehondo kufunga zvinoendesa nyika mberi hapachina pfungwa dzakazara noise yehondo.Zvino kana imi muchida maRevenues neForex moti chitengesai maproducts enyu neZig of which it is not on WORLD market.So what are trying to put across in business and on the investors' picture pertaining the future
Dofo · 7 months ago
What does Mthuli mean by "confidence building"?
Voltaire · 7 months ago
If you're serious about de-dollarisation tangai nekuma passport, duty neku fuel
Miss Jessica · 7 months ago
Failure to mitigate capital flight is exacerbating economic challenges, including a weakened currency, reduced investor confidence n decreased access to foreign capital. Policymakers must then implement a comprehensive strategy to restore macroeconomic stability, promote investor confidence
Peace and Tolerance · 7 months ago
Is ZiG even a real currency, will l be able to travel to Botswana and then convert ZiG into Pula, if not then we are doomed with this ZiG
1
Boozer · 7 months ago
Mthuli uri kutamba nenguva taneta nezvinyaya zvako zvekuda kunzi unogona but the whole truth is You can rig elections and not Economy.God is punishing you but you don't see it.Leave everything just pack your things and go.There some experts out there like Biti and l hope you know it very well that he ran that position during unity gvt and he did well. Makoniwa ipaiwo vana vevamwe mumboonawo kuti zvinodii
Peace and Tolerance · 7 months ago
The whole system is rotten my guy, changing those clowns won't lead to improvements, it's like changing clothes when the body is the one stinking. An entire new Administration is needed not this Zanu government
🦁 · 7 months ago
zvinomboda kutaugwa here..zvirikuitika tirikuzviona toga..musati nyeper
yah sure !!?? · 7 months ago
i have heard this same bullsh!t story about 5 times over the past 16 years, thats the same old story on average every 3 or so years ... LOL .. different currency name again but end result will still be the same as the last 5 currencies ...
1
mnangagwa · 7 months ago
please increase local demand
Tkt · 7 months ago
Nothing Gradual by forcing industry to switch to 70pc ZiG & 30pc US in less than 6mts of introduction of the new currency That is the true definition of a Rushed policy inconsistency by application of command Economics
Anonymous · 7 months ago
Good direction and this time we will be successful ma economic saboteurs akatarisa. Tode mare yedu yemuno kwete iyo yekunze. Unochohwa chohwa nemari yekunze iyo iwe mwana we Zimbabwe
Citizen · 7 months ago
Are u saying this from the bottom of your heart or u re just a typical Zanu bootlicker who is trying to please your master who does not even care about the future of your kids who will die suffering like you.
Peace and Tolerance · 7 months ago
We have heard this too many times but we all know the end result. The real economic saboteur s are those who are in power, so nothing will change. Ngoma ndiyo ndiyo
1
Zeus mfana · 7 months ago
Will u b successfully fools
Chibaba · 7 months ago
Zig vanetsa uyu since April
Patz · 7 months ago
Uyu murume uyu anonzi Ncube haaneti here nekuyedza zvinhu since 2017. As long as use of Zig is segregatory there is not future for Zig. How can we have 2 economies in a single economy where one part of the population is fully dollarised and the other part is has Ziglisation forced on them. Im yet to see ED or Chivayo flaunting wards of Zig at functions. Why dont these elites who introduce Zig take their USD from matress banks and exchange them for Zig as an act of confidence building. We love our local currency but the Gvt is so so little to support it
🔼 · 7 months ago
even if we all use the zig ,at the end the day forex will be needed heavily, because of we rely mostly on imports . That approach of (zig only) would just be adding fuel to the fire (the black market would intensify to crazy heights). Production first before dzungu rese iroro
🔼 · 7 months ago
at the end of the day
🔼 · 7 months ago
* because we rely
Tabvuma👏 · 7 months ago
no need for gradual apo ingobvisai forex yacho if we go kuZambia Botswana nSA we dont use USD its strictly local currency
ngaapinde hake mukoma · 7 months ago
7 zig _0.50cent 10 zig-0.50 12.5 0.50
ok · 7 months ago
hmm..... interesting

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