By Daniel Itai.
Harare, Zimbabwe. (News of The South)-
The Zimbabwean government is not backing down on enforcing its currency, the “Zimbabwean dollar” as the sole legal tender despite calls from the public to adopt the multi-currency system.
To date, a total of ZW$1.1billion worth of notes and coins is in circulation since the inception of the new currency in mid 2019. The Governor of the Reserve Bank of Zimbabwe, John Mangudya said more cash injections were on the way.
“Accordingly, the cash injections to date have not increased money supply and thus managing inflationary pressures.
The Bank will continue to gradually increase the notes and coins to the desired optimal proportion of banknotes and coins in circulation of up to 10 percent of deposits agreed by the Monetary Policy Committee.
Moreover, the bank will gradually introduce notes in larger denominations to improve efficiency and convenience to the public,” said the Governor.
Mangudya also said that the positive de-dollarisation taking place in the economy was encouraging, with key macro-economic indicators improving to support the move.
He further added that complete de-dollarisation would be done gradually over a five year period, based on other countries’ experiences.
“The measurements of the proportion of the use of the local currency in the economy show that the country is on the right trajectory to de-dollarisation.
Henceforth, the bank shall continue to provide incentives to promote and defend the use of the local currency within the economy in order to support the de-dollarisation process,” said the Governor.
Regardless, many commodities across the country are still being sold in United States dollars despite government’s calls on de-dollarisation.
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