Not The Right Time To Re-Introduce Local Currency - Economic Analysts Warn Govt

Economic analysts who spoke to The Chronicle said that is too early to introduce a local currency as the economic fundamentals to make it sustainable are not yet there. Economist and Zimbabwe National Chamber of Commerce (ZNCC) chief executive officer Mr Takunda Mugaga had this to say:

To bring back our currency calls for macroeconomic convergence which manifests itself in a narrow fiscal gap, narrow trade deficit, as well as improving market confidence. Indicators so far are not promising for Zimbabwe to have its own currency now.

We need to resolve the external debt issue, land tenure issue, domestic debt, as well as re-engaging the international community due to perceived high risk in the country.

University of Zimbabwe Economics Department chairperson Professor Albert Makochekanwa said the country should produce first before introducing a local currency. He said:

The baseline is that every country would want its own currency, but in the case of Zimbabwe, most people have no confidence in the banking sector. The introduction of local currency needs serious production and we are not producing enough. Let us address fundamentals first and gain confidence in our banking sector.

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