Mnangagwa says Zimbabwe to have own currency before end of year


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President Emmerson Mnangagwa today said Zimbabwe will have its own currency before the end of the year and people will be required to use that currency alone for all internal transactions.

He said those with foreign currency will be required to change that currency into local currency to buy products.

He said Zimbabwe needed its own currency because pegging prices on a fluctuating exchange rate meant that prices changed almost on a daily basis.

Zimbabwe introduced a local currency called the RTGS dollar and floated it on the market  but the interbank rate is failing to close in on the black-market rate leading to accusations that some big shacks with access to foreign currency on the interbank rate are flogging the money on the black-market raising the rate.

Some economists, however, say investors are fuelling the exchange rate, especially the Old Mutual Implied Rate because they want to get their money out at any cost.

Today, the interbank rate was pegged at 5.73 while the black market rate stood at 8. The OMIR was at 9.63.

Prices of basic goods have rocketed as most businesses are pegging their prices of the black market rate.

Businesses have been warned, however, that they could soon price themselves out of the market.

 

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The Insider

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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