HomeLettersLocal currency talk pure folly

Get it right, Mr Curtis

What financial criterion is going to assist Zimbabwe going forward? Stability and sustainability are elements still alien to the Zimbabwean politico-economic system.

Whilst it is true that our main trading partner is South Africa, using the rand as the only denominator exposes us to currency-value oscillations.

As for the adoption of the Chinese yuan, I think it is too early to experiment with this currency. This could backfire as the Chinese economy is still developing and its resilience is yet to be tested. As for the suggestion that we have a gold-based currency I don’t think that is the way to go because very few other countries still do so.

For me, the answer is simple; stick to the US dollar in the interim up until 2015-17. During this time economic and political structures –– both internally and internationally –– will give a clearer direction on the way forward.

Ciao,
Harare.

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