/ 22 February 2010

Zim to keep multi-currency system until 2012

The multi-currency system adopted by the Zimbabwean government early last year will remain in place until at least 2012, the Herald reported on Monday.

It cited Economic Planning and Investment Promotion Minister Elton Mangoma as saying: “The multi-currency will be in place for the next two years.”

“Zimbabwe is the only country in the world that does not have foreign-exchange risk,” he added.

After 2012, the government would then decide whether to revert to the local unit or to adopt a regional currency, he said.

The Zimbabwe dollar was abandoned in late 2008 at the height of macroeconomic instability and hyperinflation.

Mangoma said there was no reason why businesses should not do well, considering the relaxation of foreign-exchange rules to allow companies to retain all their export proceeds.

He added economic recovery should be private-sector driven, but opportunities could also be pursued through public-private partnerships.

According to the newspaper, Mangoma said the economy had been in a decline over the last decade, but double-digit economic growth rate in the next three years would restore gross domestic product to the highest levels of 1996.

“We are already geared to go back to our best in three years. We have the resources, but the biggest resource is our people.

“The only country with a better literacy rate than us in Africa is Tunisia.” — Sapa