Zimbabwe dollar still strong - Dep. PM

  1. Posted on Wednesday 20 May 2009 - 08:45
    bruce
    Bruce Sibanda, AfricaNews reporter in Harare, Zimbabwe
    The Deputy PM of Zimbabwe Arthur Mutambara said the Zimbabwe dollar is not "dead" and should be continue to be used. "This discussion or debate around the Zimbabwe dollar is work-in-progress. It does not make sense to say the Zimbabwe dollar is dead because pensioners are being paid in Zimbabwe dollars."
    At over 231 million % inflation, Zimbabwe money has become worthless. Photo by Francis Ncube.jpg
    He said such claims are ridiculous.

    He added that: "So, it is a nonsensical and unacceptable concept to even say the Zimbabwe dollar is dead or dead for a year. We must make sure we honour the amounts in the banks which is in Zimbabwe dollar, we honour the amount being paid to people in Zimbabwe dollar."

    Early this year, the multiple foreign currencies where adopted with the South African rand being the currency of reference.

    The rand and the Botswana pula are mostly used n the southern part of the country while the American dollar is popular in Harare and the rest of the country.

    Mutambara was responding to Mudzi South members of parliament Eric Navaya to clarify why government is still paying legislators and civil servants in local currency when the same money is no longer in circulation.

    But this is in sharp contradiction with announcements by Finance Minister Tendai Biti and Economic Development counterpart Elton Mangoma that the Zimbabwe dollar is “dead”

    They both said the currency would not be used for 12 months.

    Magoma said, "The Zimbabwe dollar will be out for at least a year. We resolved that there will be no immediate plans to (re)introduce the money because there is nothing to support and hold its value,"

    "Our focus is to first ensure that we have a vibrant industry. If we try to reintroduce the local currency now, it will face the same fate of being wiped out of its value within weeks."

    However a Z$50 billion note continues to circulate in Harare where it is being used as change in commuter omnibuses and by vegetable and biscuit vendors.

    The note is being used as change in most omnibuses which charge US 50 cents or 5 rand or Z$3 trillion in $50 billion notes.

    Kombi conductors and the vendors also accept the Z$50 billion notes as payment.

    Kombi conductors and vendors accept only the $50 billion note while all other denominations in the local currency have since been retired.

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