No early return of Zim dollar — Gono

RESERVE Bank of Zimbabwe governor Dr Gideon Gono has assured Zimbabweans the government had no plans to reintroduce the Zimbabwean dollar in the near future.

The statement, issued after a spate of panic withdrawals by depositors, as a reaction to Zanu PF’s win in last week’s general elections, was meant to calm the market after uncertainty caused the Zimbabwe Stock Exchange to trade in the negative on Monday and Tuesday.

President Robert Mugabe intends to bring back the Zimbabwean dollar during his reign, as one of the ways to salvage his legacy. He has however said the return of the local currency would not be rushed.

“This statement serves to emphatically dismiss those rumors and to confirm that there are no plans whatsoever, within and outside the Bank, for the immediate or near-term introduction of new currency or re-introduction of the Zimbabwe dollar into our system,” said Gono.

“As late as last week, at a press conference, His Excellency the President clarified this issue, for the umpteenth time, stating the same position as we are alluding to above and adding that ‘when the time comes, we will be very cautious and gradual about it’.”

Gono said, when eventually introduced, the Zimbabwean dollar would circulate alongside the currencies currently in circulation. He however said the multi-currency system would continue for the foreseeable future.

He warned speculative behavior could result in the resurgence of the country’s economic woes.

“While the hyper-inflation challenge is now a thing of the past, a number other deep-seated challenges which bedeviled the economy prior to 2009 are still with us, hence the need to stay the course,” said Gono.

“Accordingly, market players and the banking community are urged to stop panicking and instead, get on with their board-room strategies aimed at prospering their companies and selves in the wake of the new political realities which have been ushered in by the recently concluded harmonised elections.”

 

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