Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has indicated the possibility for Zimbabwe to once again adopt the local currency, (ZWG) as the country’s sole currency in a bid to bolster internally controlled economic growth.
Adopted on April 5 2024, the ZWG became Zimbabwe’s first structured currency with the central bank describing it as the lasting solution to currency problems.
However, despite maintaining a highly stable premium of US$1:ZWG13,86 in the first six months since inception, the local currency hit an all-time low in September 2024 when it lost much of its value on the parallel market.
The RBZ was forced to fold its tail, after ordering a 43% devaluation in its efforts to align the exchange rate to market realities.
Several economic sectors have expressed grave concerns over the ZWG with the retail sector blaming the local unit for its demise after failing to restock products.
In its 2024 annual report , the Zimbabwe National Chamber of Commerce (ZNCC) bemoaned critical foreign currency shortages at the Interbank Market, saying it was one of the most prominent factors choking productivity and economic growth.
But despite the overwhelming concerns, the RBZ deputy governor, Doctor Innocent Matshe last Thursday brought the mono-currency agenda back to the public’s attention.
“If we are going to progress, we need to put our shoulders to the wheel and get it moveing.We cannot develop using another country’s currency.That is something we need to understand and we need to internalize.
He said there is no going back of the targets set by His Excellency for 2030.
“The Governor (Dr Mushayavanhu ) has said we do not want 2030 to be an event , he means it, it has to be a process and we do not want to feel it when we get there.There would be administrative measures for that to happen,it should happen through the market and through that process,” he said.
