Zimbabwe is a long way from being ready to join Southern Africa’s rand monetary union, South African Reserve Bank Governor Tito Mboweni was quoted as saying on Monday.
”A very high degree of macroeconomic convergence is necessary. They have a very long way to go,” he told South African news agency I-Net Bridge.
A newspaper report earlier this month quoted unidentified sources as saying a regional body was working on a plan to ease Zimbabwe’s economic crisis by linking the country’s currency to South Africa’s solid rand.
The rand Common Monetary Area currently comprises South Africa, Namibia, Lesotho and Swaziland.
”For any other country to be a part of the CMA they must fulfil the strict macroeconomic convergence criteria. This includes their fiscal policy stance and inflation in particular — they must be in line,” Mboweni said.
Inflation in Zimbabwe has soared to 4 500% — the highest in the world — amid chronic shortages of basic commodities, fuel and foreign currency.
South Africa’s Sunday Independent had said the Southern African Development Community (SADC) was working on a plan to extend the rand monetary union to Zimbabwe, but the regional body distanced itself from the report. — Reuters