Rand option dilemma as currency crisis worsens

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FINANCE minister Mthuli Ncube, who has publicly said joining South Africa’s Multilateral Monetary Area could be a solution to Zimbabwe’s currency crisis, is agonising over currency reforms, as it dawns on him that his preferred choice is a herculean task, while a plethora of problems are standing in the way of other potential solutions.

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3 thoughts on “Rand option dilemma as currency crisis worsens”

  1. Chen Chikezha says:

    “Those are some of the practical realities that are there. When we sit now and I phone (South African Reserve Bank Governor Lesetja) Kganyago, he will say ‘my brother I need to go to parliament’.” This is how things should be done kaNcube, checks and balances not zvedu where ED would just say yes and it stands without any scrutiny. Reason we are where we are, if we did it this way we could have saved a lot by not diving into DRC or paying some people that ended up buying TVs for their cattle and goats. Consulting your other arms of government builds the country.

  2. ngoni mutamangira says:

    What a tricky situation concerning issues to do with currency.Th main reason why the rand is not easy to be granted issimple besides the questions.Being given the US dollars easily is an element of control.History of the world shows that CUBA is the only country whch managed to kick out the US dollar out of its system in 1945.

  3. Samir Shasha says:

    We should join the Southern African Common Customs Union (SACU) – which will bring our cost of living down to the level of that in South Africa. It would earn us a minimum of US$1 billion in SACU contributions and would make us a credible candidate to join the MMA (Rand Monetary Union). Besides, it is a feather in South Africa’s cap that Zimbabwe – a serious economic power in the region – joins their monetary and customs union. All EU countries did not immediately conform to EU monetary requirements – they were given time. We have no exports because we have no credible investment climate to produce – once we are able to freely exchange goods and services with SACU, we can issue a currency which has a fixed exchange rate to the rand at some significant discount to the imaginary 1:1 rate to the US dollar. Had we started this process 3-6 months ago when we knew what was coming we may have already been there instead of making excuses.

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