Zimbabwe’s Finance Minister, Mthuli Ncube, has said the country is not yet fully prepared to transition to a mono-currency system, as it still needs to meet several key benchmarks to support the local currency, ZiG.
Ncube said that for a mono-currency to be sustainable, Zimbabwe must first ensure it has sufficient foreign currency reserves to cover six months of imports.
He also said the country must make progress in reducing its foreign debt, which currently stands at approximately US$21 billion. Said Ncube (via <a href="https://www.herald.co.zw/zim-not-yet-ready-to-shift-to-mono-currency-govt/">The Herald</a>):
<blockquote>
The question is whether there was any consideration for the mono currency. Not as yet. The reason is that you need certain conditions to be in place first before you adopt a mono currency.
First of all, you need to be sure that you have adequate foreign reserves to defend the domestic currency, the ZiG, if ever it comes under speculative attack.
There are certain rules and benchmarks around the world such as six months … so that you will then be able to cover six months of imports without needing further flaws. Really, it’s about being able to defend the currency.
Secondly, we need to make progress on foreign debt, which will also pose risks to the value of any currency. If you have arrears or high external debt, that will pose a risk to your currency.
So, again we need to make sure that in our arrears clearance programme, we make progress towards clearing those.
</blockquote>
Zimbabwe introduced its new currency, the ZiG, in April 2024. The ZiG is backed by gold reserves and other precious metals.
In 2024, Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu presented a de-dollarization roadmap, outlining a gradual shift from the country’s heavy reliance on the US dollar to increased use of the ZiG. He said at the time:
<blockquote>
The Central Bank has come up with a roadmap towards de-dollarisation, and as we go towards 2030, we want to do it gradually so that maybe by the end of the year, we are at 70/30, in 2025 we are at 60/40, then in 2026 we are at 50/50 and after that we will not even care to monitor it because it will happen on its own.
You will also be seeing Government reviewing the amount you pay in ZiG for tax as we go along on that roadmap.
</blockquote>

Pindula News

Zimbabwe's Finance Minister said they are not ready to switch to using only one currency yet. They need to have enough foreign money to buy things for six months without running out. They also need to pay off a lot of debt. The new currency, ZiG, is backed by gold and precious metals. Zimbabwe is slowly trying to use less US dollars and more ZiG. They have a plan to slowly stop using USD and mostly use ZiG by 2030. The government will also change taxes to match this plan.

Zimbabwe Not Yet Ready For Shift To Mono-currency, Says Mthuli

The Confederation of Zimbabwe Retailers (CZR) has warned the government against banning the existing multi-currency system and designating the Zimbabwe Gold (ZiG) as the exclusive legal tender to stabilise the rapidly depreciating local currency, reported <a href="https://www.newsday.co.zw/local-news/article/200033068/no-to-forced-de-dollarisation-retailers">NewsDay</a>.
On September 27, the Reserve Bank of Zimbabwe (RBZ) devalued the ZiG from 14.1 to 24.3 per United States dollar. 
In the wake of this devaluation, some economic analysts have urged the government to ban the use of the United States dollar and adopt the ZiG as the exclusive currency for trade.
However, in a report addressed to RBZ governor John Mushayavanhu on September 30, CZR president Denford Mutashu warned that enforced de-dollarisation could have “catastrophic consequences” for the economy. Said Mutashu:
<blockquote>
As the CZR, we strongly believe that any attempts to fully de-dollarise at this stage could have catastrophic consequences for both businesses and the broader economy.
A hasty transition will amplify current economic challenges rather than alleviate them.
</blockquote>
Mutashu warned that banning the US dollar for domestic transactions could lead to fuel shortages and severely impact the retail sector, along with other industries. He said:
<blockquote>
Any move to switch the currency of transaction, without adequate reserves and systems in place, will inevitably lead to scarcity, causing significant disruptions across all sectors.
The transportation industry, a critical player in the retail supply chain, would also be affected, driving up logistical costs and causing inflationary pressures.
With the current foreign currency exchange allocation system, there are already challenges in meeting the demands of industries for US dollars.
Full de-dollarisation would exacerbate these shortages as businesses will struggle to secure foreign currency to import essential goods and raw materials.
</blockquote>
Mutashu suggested that, for now, the government should permit the coexistence of both the US dollar and the ZiG to provide businesses and consumers with the flexibility necessary to adapt. He added:
<blockquote>
Gradually, as confidence in the local currency builds, the reliance on the US dollar can be reduced.
</blockquote>
In an interview with NewsDay, Economist Prosper Chitambara said de-dollarisation should be market-driven. He said:
<blockquote>
Well, my thinking is that the issue of de-dollarisation is a very sensitive matter and it is a matter that must be dealt with very circumspectly and also very cautiously.
It must not necessarily be a rushed exercise or a government-decreed exercise, but it must be an inclusive process that is based on a market-determined process that is tied to the attainment of certain key benchmarks around issues of production, issues of reserves, inflation and issues of informality.
</blockquote>
Economist Vince Musewe warned that forcing a local currency will collapse the economy. He said:
<blockquote>
Zimbabweans prefer the US dollar and that is not about to change. Unless there is a drastic change in policymaking, the same problems will continue to be faced by us beyond 2030. Forcing a local currency will collapse the economy.
</blockquote>
The ZiG, or Zimbabwe Gold, was launched in April 2024 and represents the country’s sixth attempt to establish a stable currency in the past 15 years.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Retailers in Zimbabwe are worried about the government changing the currency to only use the Zimbabwe Gold (ZiG) instead of the US dollar. They say this could have bad effects on the economy, like fuel shortages and higher prices. They want both currencies to be allowed for now, until people trust the ZiG more. Economists also think the change should be gradual and decided by the market, not rushed by the government. They are worried that forcing a new currency could make things worse for the country. The ZiG was started in 2024 as an attempt to make a stable currency.

Retailers Warn Government On Potential Risks Of De-Dollarisation

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 <a href="https://www.businessweekly.co.zw/de-dollarisation-well-underway-mthuli/">Business Weekly</a>):
<blockquote>
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.
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.
</blockquote>
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:
<blockquote>
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.
</blockquote>
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.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The government is making a plan to use less US dollars and more of our own money. They want a stable local currency to help our economy grow. The Minister says the plan is working well so far. To be successful, they need to keep the policy consistent and build trust in our money. They will also work on managing debt, collecting more money, and using less foreign currency. The goal is to boost the economy and make our products more competitive in other countries. People hope this plan will help Zimbabwe's economy get better.

Gradual De-Dollarisation Well Underway - Mthuli

The Zimbabwean government has stated that it will announce a clear and transparent plan to move away from using the United States (US) dollar in order to prevent any negative impacts on the economy and to avoid further hardships for its citizens.
Originally, the country was planning to end the use of the US dollar and other foreign currencies in 2025, as they currently coexist with the local currency. However, President Emmerson Mnangagwa has extended the deadline to 2030.
In 2019, the government reintroduced the local currency after a ten-year period of using the US dollar. However, the local currency has struggled to maintain its value. As a result, some businesses have started pricing their goods and services exclusively in US dollars to protect themselves from potential losses. Additionally, banks have stopped lending in US dollars to prevent financial losses.
Deputy Finance Minister Kudakwashe David Mnangagwa informed lawmakers that the government is engaging in extensive consultations with stakeholders and will keep the markets informed about the de-dollarisation strategy. He said:
<blockquote>
As government and as Treasury, we are committed to coming up with a roadmap. The road to de-dollarisation will not be an event, but rather a process.
You find that there are measures that the country is putting in place. This is part of the de-dollarisation programme.
After thorough consultations with all stakeholders, the market will come up with a published roadmap that will be available to all, but to answer in a nutshell, there is no definitive date, it is going to be a process.
</blockquote>
Mnangagwa, who is the son of the President of Zimbabwe, stated that the transition to a single currency will happen gradually and will not be sudden or abrupt. He mentioned that there has been some stability in the currency exchange rate and prices, thanks to the policies in place by the Treasury. These policies aim to sustain stability and prevent sudden increases in the exchange rate that can lead to inflation.
However, Mnangagwa acknowledged that the local currency, the Zimbabwe (Zim) dollar, is vulnerable to attacks from economic predators. He mentioned that during the bonus season, there may be individuals who try to take advantage of civil servants’ salaries.
Zimbabwe switched to using the US dollar in 2009 after the collapse of the local currency during a period of hyperinflation. Attempts to return to using the Zim dollar exclusively have caused market concerns and affected exchange rate stability.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Deputy Finance Minister Mnangagwa Says Govt Will Announce Clear Plan On De-dollarisation

Economic commentator Gift Mugano has predicted that Zimbabwe’s annual inflation will be 400% with the exchange rate likely hitting ZWL$1500: US$1 by June this year.
The Zimbabwe dollar is currently trading at ZWD$1.100 to the USD on the black market, <a href="https://www.newzimbabwe.com/annual-inflation-to-reach-400-while-exchange-rate-likely-to-hit-zw1500-by-june-says-economic-analyst/">reported NewZimbabwe.com.</a>
Year-on-year inflation was also the highest in the world at 255% in November last year.
Responding to claims by the Reserve Bank of Zimbabwe (RBZ) governor John Mangudya, that the country’s de-dollarisation was on course, Mugano said on the contrary, the central bank’s policies are driving dollarisation.
He argued that chronic inflation and the 200 percent interest rate are some of the main drivers of dollarisation. Said Mugano:
<blockquote>
I am still convinced that the following remains our economic outlook by June 2023; annual inflation of 400% and exchange rate ZW$1500/US$1.
… we have deepened dollarisation. The main drivers of dollarisation are chronic inflation, 200% interest rate, excess liquidity caused by Treasury and domestic export retention as well as high export retention.
With a 200% interest rate, businesses have switched to USD loans since it has virtually become impossible to pay back loans fourfold.
The 20% domestic export retention and 40% export retention compels RBZ to print ZWL in exchange for the 20% domestic deposits and 40 percent export receipts.
RBZ does not have a budget set aside for this. This drives up money supply. In August and September 2022, money supply rose by $708 bn excess liquidity driven by the treasury.
</blockquote>
Mugano noted that excessive liquidity driven by treasury is driving inflation and de-dollarisation cannot be achieved in such an environment. He said:
<blockquote>
Excessive liquidity driven by treasury – without going far, in December 2022, treasury irresponsibly made last-minute payments to Ministries and government departments’ requests thereby putting the rate into disarray.
</blockquote>
The Treasury could have staggered these payments during the course of the year.
<blockquote>
Inflation and de-dollarisation can only happen when the country attains single-digit inflation and exchange rates are stable.
This will cultivate a productive culture which is key to supporting the local currency. This is missing. We have chronic inflation and volatile exchange rates.
</blockquote>
To further prove his point that the economy is dollarising, Mugano pointed to the sudden decline of allotment from the RBZ’s auction system. He said:
<blockquote>
The auction system allotment is an interesting one. In 2022 imports surged to above US$ 8.2 billion (exceeding 2021 imports by US$1 billion) but the USD allotted to firms declined from US$42 million per week to US$11 million.
So imports are increasing but the forex given by the RBZ to firms to support imports is falling.
It tells you one thing, firms are now relying on their own generated forex from local sales to meet their import requirements.
This means that we have deepened dollarisation.
</blockquote>

Top Economist Predicts Sharp Rise In Inflation, Exchange Rates By June 2023

Finance and Economic Development Minister, Mthuli Ncube, on Thursday, insisted that the Government has put in place strong economic fundamentals to support the Zimbabwe dollar and full dollarisation is not an option.
Ncube said the Government is now focusing on ending arbitrage and speculative behaviour driving the depreciation of the local currency.
The local currency has shed considerable value in recent months both on the formal and informal markets and economic commentators and ordinary people have called for the dollarisation of the economy.
The Zimbabwe dollar is trading at ZWL$338: US$1, while on the parallel market it is going for anything between ZWL$500-ZWL$550 against the greenback.
Addressing a meeting on the currency crisis convened by the Political Actors Dialogue (POLAD) interlocutors in Harare on Thursday, Ncube blamed indiscipline within the market for the loss of value of the local currency. Said Ncube:
<blockquote>
When you look at the fundamentals, they are strong in the sense of the deficit position, fiscal position and the monetary policy position, and when we consider the current account situation as well.
We should end the year again with a current account surplus with more inflows than outflows into the economy.
So, the fundamentals are strong; there is nothing wrong with the fundamentals.
It is really the arbitrage and speculative behaviour that we see in the market, and we have taken some measures to deal with that.
</blockquote>
Ncube also ruled out full dollarisation, saying the country will continue the use of the dual currency system in line with the Government’s five-year de-dollarisation plan. He said:
<blockquote>
We cannot just have the USD circulating because that will wipe out the balance sheets of companies. If you do that it will create a very dangerous situation.
You will also wipe out the pension balances so we do not want to go there, we have been there before.
Here we are trying to compensate citizens for losses (incurred when the country adopted the multi-currency regime) and people want to go back there.
</blockquote>
<h4>More: <a href="https://newziana.co.zw/2022/06/16/fundamentals-to-support-strong-local-currency-in-place-fin-min/">New Ziana</a></h4>

Mthuli Ncube: Fundamentals To Support Strong Zim Dollar In Place

CCC leader Nelson Chamisa has urged President Emmerson Mnangagwa to get rid of the Zimbabwe dollar and adopt the US dollar as the sole currency in order to stabilise the economy.
In a position paper on the state of the economy released on Friday, 29 April, Chamisa said the Government should immediately come up with a de-dollarisation roadmap that takes into account the views of all stakeholders. Chamisa said:
<blockquote>
Stop the auction system and go for dollarisation. This will immediately remove distortions, multiple pricing, arbitrage, secure stability and save exporting companies from imminent collapse and help all businesses and economic agents to preserve capital.
… There is a crisis of confidence in the market. Citizens are suffering from the price hikes and the deepening poverty level.
All government policies must be demand-driven, inclusive and fully consultative.
We should immediately work on a de-dollarisation roadmap which is inclusive and evidence-based and built on consensus as opposed to command economics and threatening businesses with statutory instruments.
</blockquote>
The Government re-introduced the Zimbabwe dollar in 2019 after a decade of a multiple currency regime which brought relative stability to the economy.
The local currency has, however, lost value alarmingly due to the low confidence in the market and this has triggered inflation and sharp price increases.
Economist Gift Mugano also called for full dollarisation, saying businesses cannot thrive where the exchange rate changes daily. Said Mugano:
<blockquote>
We should go for full dollarisation clearly because the current economic trajectory has rejected the Zimbabwean dollar.
It’s difficult for businesses to run their companies when rates are changing every day.
With these ugly indicators, there is no company that can operate sustainably.
In any way, the economy is already dollarised as evidenced by the rejection of the Zimbabwe dollar by retailers.
</blockquote>
However, another economist, Maxwell Saungweme, said dollarisation was not sustainable and what the Government needs to do is to stabilise the Zimbabwe dollar. He said:
<blockquote>
The fundamental issue is not about dollarisation, but the stability of our local currency. Zimbabwe needs to have its own stable currency.
What must be done is to work on measures to stabilise our local, not advocating for its removal and replacing it with the US dollar.
We need to get our economic fundamentals right, boost our productive capacities and have other clear measures to stabilise our currency.
You can’t run an economy without the capacity to leverage monetary policy instruments.
You lose your capacity to leverage monetary policy instruments.
</blockquote>
<h4>More: <a href="https://www.newsday.co.zw/2022/04/forget-the-zimdollar-chamisa/">NewsDay</a></h4>

Get Rid Of Zimbabwe Dollar And Fully Adopt US Dollar, Says Chamisa

The Government has availed, through Kuvimba Mining House, US$400 000 to the Deposit Protection Commission (DPC) to compensate small and vulnerable depositors whose bank deposits lost value when monetary authorities arbitrarily moved the exchange rate from US$1: $1 to US$1: $2.5 in February 2019.
In November 2020, Finance Minister Mthuli Ncube announced that the Government will compensate small and vulnerable depositors who had balances of US$1 000 and below as of 20 February 2019.
The initial tranche of US$400 000 has been allocated to eligible depositors who had funds in the Deposit Taking Microfinance Institutions (DTMFIs).
The depositors will receive compensation to the full extent of their respective loss of value, and not the full amount they had deposited.
For instance, a depositor who had US$1 000 in his or her account will get only US$600.
In a statement, DPC chief executive officer Mr Vusi Vuma confirmed receipt of the US$400 000 and urged those eligible are to submit their claims to DTMFIs, with their window period to do so set to expire on 7 November 2022. He said:
<blockquote>
Government has now availed through Kuvimba Mining House the sum of US$400 000 to the Deposit Protection Corporation as an agent for distribution to vulnerable depositors.
Given the available resources, several scenarios were iteratively evaluated to identify a method that offers the best compensation to depositors.
The Deposit Protection Corporation wishes to advise the banking public that in the meantime, the initial tranche of US$400 000 will be allocated to eligible depositors who had balances of US$1 000 and below in the Deposit-Taking Microfinance Institutions, to pay for the loss of deposit value occasioned by exchange rate movement from USD1: 2,5, as at 20 February 2019.
Accordingly, qualifying depositors are advised to submit their claims as of 20 February 2019 within a period of 12 months running from 8 November 2021 to 7 November 2022 to their respective registered Deposit-Taking Microfinance Institutions namely: African Century Limited; Getbucks Microfinance Bank; EmpowerBank Limited; Zimbabwe Women’s Microfinance Bank; Success Microfinance Bank Limited; and Lion Microfinance Limited.
The Deposit-Taking Microfinance Institutions will periodically submit the schedule of claims to the Deposit Protection Corporation for verification, validation, and subsequent remittance of the requisite payment to the Deposit-Taking Microfinance Institutions for onward settlement to eligible depositors in USD without incurring transaction costs.
The Minister of Finance and Economic Development, Deposit Protection Corporation, the Reserve Bank of Zimbabwe, and the banking sector have reached an agreement in that regard.
After compensating depositors of Deposit-Taking Microfinance Institutions, subsequent tranches for disbursement would be allocated to remaining deposit-taking institutions namely commercial banks, building societies, savings banks, and infrastructure banks, as and when additional funds are availed.
</blockquote>
<h4>More: <a href="https://www.sundaynews.co.zw/govt-to-pay-us-to-depositors/">The Sunday News</a></h4>

USD Compensation For Depositors Who Lost Savings Due To De-dollarisation

<blockquote>The Reserve Bank of Zimbabwe (the Bank) wishes to advise the public that the document titled “De-dollarisation Road Map” which has been circulating on social media was leaked by a senior Bank economist, Philton Makena, who had access to a document on the macro-economic policy measures to support the five-year de-dollarisation strategy which was being worked on by a team of economists in the Bank.
The draft document is not official as it has not even been discussed at both Bank and Government levels. The document should, therefore, be disregarded.
The draft document was being worked on by the team of economists on a computer allocated to a chief economist in the Bank, Paul Gilmour Mukoki. The Bank has since established that Mr Mukoki was not responsible for the leakage of the document.
Mr Makena’s conduct amounted to breach of the oath of secrecy by which all Bank employees are bound.
Accordingly, the Bank has suspended him, with immediate effect, and has commenced disciplinary proceedings against him.
The Bank sincerely regrets the anxiety and inconvenience the leaked document may have caused.
John P Mangudya 
Governor
16 April 2020
</blockquote>

FULL TEXT: RBZ Speaks On 'Leaked' De-dollarisation Roadmap Document

Reserve Bank of Zimbabwe (RBZ) Governor <a href="https://www.pindula.co.zw/John_Mangudya" rel="noopener noreferrer" target="_blank">John Mangudya</a> said de-dollarisation is a process and the central bank will not reveal the timelines of when the whole process will be achieved.
Mangudya said this while responding to questions from journalists on the RBZ’s perceived inconsistencies regarding the de-dollarisation. He said:
<blockquote>When we talk about de-dollarisation, it does not mean everything else stops. We need to look at the benefits of dollarisation and de-dollarisation.
We have gold producers who are paid 50 per cent in forex and 50 per cent in the local currency, how do you expect them to use their foreign currency?
What we have not done is give timelines on what we did on day 1 day 2 day 3 day 4 for everyone to see the process.
There is no inconsistency in that regard, some companies are trading in foreign currency, some are being taxed in foreign currency, it is a process. What is left is having timelines.
We are all aware that 60 per cent of the economy is informal and 40 per cent is formal and there is too much money in the informal economy. So, this is a way of taking foreign currency to the formal economy when they buy fuel in foreign currency.</blockquote>
Zimbabwe ditched the use of multi-currencies in June last year and re-introduced the Zimbabwe dollar.
<h4>More: <a href="https://www.zbcnews.co.zw/de-dollarisation-is-a-process-dr-mangudya/" rel="noopener noreferrer" target="_blank">ZBC News</a></h4>

Mangudya Justifies 'Pace' Of De-dollarisation

Some Kombi crews in Harare are now demanding transport fares in foreign currency saying that they buy fuel in US dollars.
A tout who spoke to NewZimbabwe.com and identified himself as Sam revealed that the transport fare from the city centre to Chitungwiza has been pegged at US$1 while that from <a href="https://www.pindula.co.zw/Warren_Park" rel="noopener noreferrer" target="_blank">Warren Park</a> to the city centre is now US$0.50. Said Sam:
<blockquote>We are buying fuel in US dollars so it is only logical that we charge in the same currency.
My kombi plies the Warren Park 1 to town route which is not really strict on US dollar payments but my colleagues plying the Chitungwiza route are already demanding US$1 per person or equivalent for them to buy foreign currency on the black market at the end of their working day.
Fares to Warren Park 1 and back have been rising everyday hence we have opted to encourage our passengers to pay US$1 per pair.</blockquote>
In 2019, the government of Zimbabwe banned the use of foreign currency in domestic transactions, with Finance Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube" rel="noopener noreferrer" target="_blank">Mthuli Ncube</a> and Reserve Bank of Zimbabwe Governor <a href="https://www.pindula.co.zw/John_Mangudya" rel="noopener noreferrer" target="_blank">John Mangudya</a> insisting that de-dollarisation is irreversible.
However, economic analysts have since warned authorities that the re-introduction of the Zimbabwe dollar was done prematurely with no supporting fundamentals in place.
<h4>More: <a href="https://www.newzimbabwe.com/kombis-now-demanding-fares-in-us-dollars/" rel="noopener noreferrer" target="_blank">NewZimbabwe.com</a></h4>

Kombi Crews Now Charging Transport Fares In US Dollars - REPORT

Governor of the <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe" rel="noopener noreferrer" target="_blank">Reserve Bank of Zimbabwe</a>, <a href="https://www.pindula.co.zw/John_Mangudya" rel="noopener noreferrer" target="_blank">John Mangudya</a> has said de-dollarisation is a process and not an event, and additionally, foreign currency will remain acceptable in a de-dollarized economy.
Mangudya claimed that in the DRC, 70 per cent of transactions remain in forex despite a path to de-dollarisation, while in Belarus forex is still being used though the country is now in its eighth year of de-dollarisation. He said:
<blockquote>As a Government, we have defined where we are going, and that is the de-dollarisation route.
Because it’s a process and not an event, we are saying as the central bank that we believe within five years, we will complete de-dollarisation.
By de-dollarisation we are not saying there will be no more foreign currency in circulation; that is a wrong definition of de-dollarisation because if you look at those countries that have de-dollarised, for instance, Zambia, Cameroon, Ethiopia, they still accept foreign currency and you can still open a foreign currency account.</blockquote>
Mangudya’s remarks follow a recent announcement made by <a href="https://www.pindula.co.zw/Zuva_Petroleum" rel="noopener noreferrer" target="_blank">Zuva Petroleum</a> that it will be accepting foreign currency for fuel payments at eight of the firm’s service stations across the country.
Meanwhile, the Zimbabwe Energy Regulatory Authority (ZERA), which license fuel companies to sell fuel in foreign currency, has already made it clear that applicants will have to meet a number of conditions.
<h4>More: <a href="https://www.chronicle.co.zw/rbz-boss-explains-forex-fuel-it-wont-stop-de-dollarisation/" rel="noopener noreferrer" target="_blank">Chronicle</a></h4>

Mangudya: De-dollarisation Does NOT Mean There Will Be No More Forex In Circulation

A local securities company Morgan &amp; Co has scoffed at the RBZ’s drive to de-dollarise the economy and said the idea that the economy was de-dollarising as pawned by they RBZ Chief <a href="https://www.pindula.co.zw/John_Mangudya">John Mangudya</a> and the treasury boss<a href="https://www.pindula.co.zw/Mthuli_Ncube"> Mthuli Ncube</a> was pure fiction, The Standard reports.
A review by Morgan &amp; Co reads:
<blockquote>We are perplexed by the fact the monetary authorities in Zimbabwe exhibit a lack of touch and appreciation of developments within the broader monetary system. The idea that the economy is de-dollarising is extreme fiction.
Our concern is that those that follow economic policy developments in Zimbabwe will have to separate fiction from reality so as to make sound investment decisions.</blockquote>
On the contrary, the economy has re-dollarised as businesses are openly seen selling their goods in Forex despite <a href="https://news.pindula.co.zw/2019/10/18/govt-to-enforce-compliance-on-use-of-the-zimbabwe-dollar/">Mthule Ncube saying treasury will enforce compliance</a> when it comes to charging in forex.
More: <a href="https://www.thestandard.co.zw/2020/02/23/mangudya-fire-currency/">The Standard </a>

The Idea That The Economy Is De-Dollarising Is Extreme Fiction - Morgan & Co

MDC leader <a href="https://www.pindula.co.zw/Nelson_Chamisa" rel="noopener noreferrer" target="_blank">Nelson Chamisa</a> has said de-dollarisation is a lie and a pretence as senior government officials shun the local <a href="https://www.pindula.co.zw/RTGS_Dollars" rel="noopener noreferrer" target="_blank">RTGS dollars</a> in favour US dollars.
Chamisa made the remarks while addressing a press conference at the party’s headquarters on Wednesday morning. He said:
<blockquote>Government is transacting in the US dollar. Mr Mnangagwa is carrying US dollars in his pocket and so is everyone in government.
So we don’t want to live a lie. This is part of the biggest challenge our country is facing.
We seem to thrive on institutional dishonesty and taking lies to be our modus operandi. Why should we pretend that the RTGS is the currency of choice?
When in fact the currency of choice is the US dollar. Some of the distortions we are seeing are on account of denial.</blockquote>
While Finance and Economic Development Minister Mthuli Ncube has warned that businesses that are demanding foreign currency will be punished, <a href="https://www.pindula.co.zw/Zuva_Petroleum" rel="noopener noreferrer" target="_blank">Zuva Petroleum</a> on Tuesday announced that it will be selling fuel at eight selected service stations in foreign currency.
<h4>More: <a href="https://twitter.com/OpenParlyZw/status/1230083413094412288" rel="noopener noreferrer" target="_blank">OpenParlyZw</a></h4>

De-dollarisation A Lie & Pretence - Chamisa

The <a href="https://www.pindula.co.zw/Zimbabwe_Stock_Exchange">Zimbabwe Stock Exchange</a> this past week closed the week at  $43,27 billion after the market jumped a whopping 32.15%, The Chronicle reports. The bullish jump according to the publication is the post-de-dollarisation all-time high.
According to the publication:
<blockquote>The ZSE All Share Index raced past the 300 points mark and closed the week at 332,05 points, its all-time high, after the cumulative gains of 32,15 percent over the week.
The ZSE’s main Industrial Index would not to be out shone after it added 32,62 percent and closed at 1 109,41 points, as it breached the 1 000 points mark for the first time and ended the week up and 44,77 percent firmer.</blockquote>
The biggest gainers were Padenga, Cassava, Simbisa, Delta, Econet while Zimplow, Zimpapers, FBC, First Mutual and OK followed.
Meanwhile, <a href="https://news.pindula.co.zw/2020/02/03/stocks-drop-sharply-in-china-as-coronavirus-outbreak-stings-economy-death-toll-stands-at-361/">stocks in China plummeted due to the outbreak of the Coronavirus.</a>
More: <a href="https://www.chronicle.co.zw/zimbabwe-stock-exchange-in-best-weekly-run/">The Chronicle </a>

ZSE In A Post De-Dollarisation All Time High

The <a href="https://www.pindula.co.zw/Mthuli_Ncube">Minister of Finance</a> speaking at the Zimpapers breakfast meeting on Friday said it would take time to reach the de-dollarisation target as very few economies had successfully de-dollarised, the Herald reports.
The treasury boss according to the publication said:
<blockquote>We are in a transition but the trick to de-link from the United States dollar is exchange rate stability. If we can keep the exchange rate stable for six months to a year, it can help us de-link</blockquote>
Zimbabwe banned the <a href="https://news.pindula.co.zw/2019/06/24/breaking-rbz-si-142-bans-use-of-all-foreign-currencies-with-effect-from-24-june-2019/">multi-currency system on 24 June 2019</a> in favour of the mono currency and has since introduced new notes to work concurrently with the quasi currency that was introduced in 2016.
More: <a href="https://www.herald.co.zw/zim-global-de-dollarisation-case-study-mthuli/">The Herald</a>

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