Harare - Zimbabwe will not be adopting the rand, the country’s central bank chief has said, arguing that the southern African country’s cash woes are stemming from high imports and poor local production.
Cash shortages have characterised Zimbabwe’s economy in the past few years, with bank queues still dominant and most cash machines still running out of bank notes.
The introduction of bond notes has failed to stem the liquidity constraints in Zimbabwe and this had led to calls from industrialists and business people for the adoption of the rand.
However, the Reserve Bank of Zimbabwe governor, John Mangudya has shot down this, saying at the weekend that the rand will be used in Zimbabwe alongside other multiple currencies and not as the major currency.
“We can’t talk of adopting the rand as our major currency as we already have it in the multi-currency basket introduced back in 2009,” Mangudya was quoted as saying by state media.
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The Confederation of Zimbabwe Industries has led calls for the adoption of the rand while other economists also say Zimbabwe will benefit from adopting the SA currency as most companies procure stock, supplies and inputs from Africa’s most industrialised economy.
“We have always said that the fundamental problem of this economy is not about currency, but localised production, stimulating exports and discouraging imports of finished products at all costs,” Mangudya added.
BUSINESS REPORT ONLINE