‘I fear for the stability of the state in every way’: Eddie Cross on Zim dollar return

‘I fear for the stability of the state in every way’: Eddie Cross on Zim dollar return 1

HARARE – Hours after Zimbabwe abolished the multi-currency system and announced the return of the Zimbabwe dollar on June 24, economist Eddie Cross spoke to the SABC about the move, warning it had potential to destabilise the country. He had met Finance Minister Mthuli Ncube for two hours just a day earlier, and told of his complete surprise about the currency move announced 24 hours later: “It came as a complete bolt out of the blue, nobody was expecting this. For those of us who’re in the game, we think…

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RBZ opens floodgates for bureaux de change

RBZ opens floodgates for bureaux de change 3

By Golden Sibanda The Reserve Bank of Zimbabwe (RBZ) has scrapped the US$10 000 daily trading limit for bureaux de change and the 2,5 percent maximum profit margin for banks to make the interbank forex market more efficient and bolster Government’s currency reforms. The Reserve Bank of Zimbabwe (RBZ) Dr John Mangudya This comes after Government on Monday outlawed the multi-currency regime and restricted transactions to local currency (Zimbabwe dollar), to curb widespread market indiscipline that has seen traders quoting prices of essential products and services in US dollars and…

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Chamisa warns Zimbabwe’s ‘ambush currency measures’ will end in failure

Chamisa warns Zimbabwe’s ‘ambush currency measures’ will end in failure 4

HARARE – Movement for Democratic Change leader Nelson Chamisa accused the government of passing “ambush currency measures” on Monday after the government called time on a 10-year multi-currency regime and announced the return of the Zimbabwe dollar as the sole legal tender. Finance Minister Mthuli Ncube said the measure, announced in a surprise government gazette, was taken to stop the market from dollarising. But Chamisa says the new measures will only end in grief without public confidence in a Zimbabwean currency. “Guerilla economics and ambush currency measures are ill-advised, destructive…

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Zimbabwe bans foreign currency

Zimbabwe bans foreign currency 6

By Nelson Banya | Reuters | Zimbabwe made its interim currency the country’s sole legal tender on Monday, ending a decade of dollarisation and taking a another step towards relaunching the Zimbabwean dollar. Finance Minister Mthuli Ncube The central bank also hiked its overnight lending rate to 50% from 15% as a part of a set of measures to protect the RTGS dollar introduced in February. “The march towards full currency reform is part of our transitional stabilisation programme,” Finance Minister Mthuli Ncube said in a video posted on Twitter.…

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ZimDollar Coming Back: Mnangagwa says “we must have our currency by the end of this year”

ZimDollar Coming Back: Mnangagwa says “we must have our currency by the end of this year” 7

By MacDonald Dzirutwe | Reuters | Zimbabwe must have a new currency by the end of the year, President Emmerson Mnangagwa said on Friday, arguing this would help stabilise prices after inflation hit a 10-year high. President Emmerson Mnangagwa during an interview on Carte Blanche in 2018 The southern African nation in February removed an unrealistic peg for its electronic dollars and surrogate bond notes and merged them into a transitional currency called the Real Time Gross Settlement (RTGS) dollar. The unit, which started trading at 2.5 to the dollar…

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Eddie Cross: Issuing a new currency mid-year will strengthen Reserve Bank and eliminate queues

Eddie Cross: Issuing a new currency mid-year will strengthen Reserve Bank and eliminate queues 8

By Eddie Cross The Reserve Bank Governor gave a long awaited monetary policy statement. This had been expected in January and was postponed several times because of disagreements in Government as to what should be announced. The Minister of Finance has been following a carefully crafted reform program to restore fiscal and monetary stability within the framework of sound macro-economic conditions. Former BULAWAYO South MDC-T legislator, Eddie Cross When he first came into office I warned him that when he walked into his office, that a bucket full of nasty…

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Zimbabwe dollar back in 12 months: Ncube

Zimbabwe dollar back in 12 months: Ncube 9

By MacDonald Dzirutwe | Reuters | Zimbabwe will introduce a new currency in the next 12 months, the country’s Finance Minister said, as a shortage of U.S. dollars plunges the financial system into disarray, forcing businesses to close and threatening unrest. Professor Mthuli Ncube The southern African nation abandoned its own hyperinflation-wrecked currency in 2009 at the height of an economic recession, adopting the greenback and other currencies including sterling and the South African rand. But without enough hard currency to back up the $10 billion of electronic funds trapped…

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