"Replacing the US currency multi-currency regime by South Africa as the only currency of the transaction would help reduce overestimation and stimulate exports and growth. In any currency regime, Zimbabwe must adhere to sound macroeconomic policies, avoid excessive spending on public wages, and create a favorable investment environment, "Mthuli said in a working document titled" Real exchange rate and growth in Zimbabwe: Is the currency regime important?
It was composed by Lisa Tazviing
"What I will now argue is that we have to remove the currency of the bond that becomes the replacement dollar of Zimbabwe but without the macroeconomic credibility of supporting it. So this should be removed because it is bad money and we know that in the economy, bad money is throwing good money, it is not surprising that even the US dollars are now lacking because people do not bank but hold them under their mattress. So I would say that the current course of action removing bonds and let the US dollar again be the main currency of the focus, but over time we have to return the Zimbabwean dollar. "
"I am very clear that currency reforms must be carried out, and the (current) currency approach does not work. By doing this, there are three options that I will investigate and follow urgently: First, adopt only the US dollar and remove the bonds from the traffic through the process of demonization and also liberalize the exchange controls. Second, adopt the rand negotiating for the Rand Monetary Zone, which will close the gap in the loss of competitiveness for our largest trading partner, South Africa. Third, adopt a new dollar dollar, and here it should be clear that it must be backed up by adequate foreign exchange reserves and macroeconomic conditions for its stability. Foreign currency accounts will also be introduced. Valuable reforms will certainly be implemented. I would like to spend it by the end of the year, "Ncube says in a local publication shortly after the nomination.
"What was happening on the market was that the market was only American-dollar, it was uncontrollable and we felt it was necessary to control the situation," Ncube explains why the government re-introduced the Zimbabwean dollar on Monday.