This week's issues
| Plans to bring back Zim dollar |
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| Written by STAFF REPORTER |
| Wednesday, 11 November 2009 16:19 |
 HARARE - President Robert Mugabe’s Zanu (PF) party is said to be hatching a plan to re-introduce the worthless and valueless Zimbabwean dollar, according to sources.
The sources said that Mugabe’s party wanted the Zimbabwean dollar to be used alongside the multi-currencies. Their argument for this plan is that most rural people, who form the core of Mugabe’s dwindling support base, have been negatively affected by the use of the multi-currency system. Zimbabwe introduced the multi-currency system early this year following the formation of the unity government. It was a desperate attempt to contain inflation which had reached a staggering 231 million per cent by July 2008. But our sources said the re-introduction push was politically motivated and designed to allow Mugabe’s cronies to once again plunder state resources through the unmitigated printing of money and distribution of largesse through the Reserve Bank of Zimbabwe. “Discussions are at an advanced stage on a document that is to be presented at the Zanu (PF) national congress next month. The document contains arguments on how the Zimbabwe dollar can be reintroduced,” said our source. A committee led by the Zanu (PF) secretary for administration, Didymus Mutasa, was said to be spearheading the crafting of the Zimbabwe dollar re-introduction plan. The team is also working with the RBZ Governor Gideon Gono, who has so far been the prime mover of the idea, and officials from the central bank. “There is a growing feeling that we have lost our sovereignty by using the currencies of imperialists. Another view is that the foreign money must be used simultaneously with our local currency just like other African countries that have adopted the multi-currency system,” said our source. During his visit to Zhombe last week, Mugabe, told villagers that the worthless dollar would be back in circulation before year-end. He said multiple foreign currencies that replaced the local dollar were unavailable to Zimbabweans. "The use of multiple currencies is not helping our people much as the money is difficult to secure," Mugabe said. "We will be reintroducing our own currency by the end of the year. People are failing to board buses. Some are using goats to pay as bus fares. This needs to be redressed. I do not hope to face similar problems next year. We would have failed as leaders if that is allowed to happen." But such comments are likely to further separate the feuding political parties as Finance Minister Tendai Biti, has already said that he will quit the country’s inclusive government if he is forced to re-introduce the Zimbabwe dollar. The MDC view these calls by Zanu (PF) to re-introduce the Zimbabwe dollar as an attempt to take the country back to the era of patronage governance, corruption and the dishing out of largesse to Zanu (PF) members who now struggle to command a normal life without the local dollar. |
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