No plans to make the US dollar sole currency, the Zimbabwischer finance minister describes the idea as a suicide Twittersmash
No plans to make the US dollar sole currency, the Zimbabwischer finance minister describes the idea as a suicide Twittersmash
The Zimbabwischen Finance Minister Mthuli Ncube recently told economic leaders that he did not plan to make the US dollar the sole currency of the country again.
government focuses on strengthening the state currency
Instead of maintaining those who demand the dollarization of the Zimbabwischen economy, NCUBE suggested that his ministry actually focused on defending the value of the Cimdollar. According to a test report According to Sunday, the Zimbabwischen minister made these comments when he was on a pre-budget seminar in Victoria language.
Since his reintroduction in 2019, when he was briefly equal to the USD, the official exchange rate of the Cimendollar compared to the US dollar fell to over 90 ZWL for each USD. On the parallel market, one US dollar currently corresponds to more than $ 160.
Despite the continued decline in the local currency and the warnings of companies, NCUBE is quoted by the Sunday Mail and argues against a renewed dollarization of the economy. He explained:
colleagues, we cannot take over the US dollar as an official currency alone. They were there before and there were snakes at banks, huge foreign currency deficits and they had deflation. That was due to the US dollar. It is not a good idea and it will be suicidal to do this.
cimdollar as a transaction currency
On the other hand, the NCube report cites with the reference to the increased industrial production as one of the achievements that were achieved when the cim dollar was reintroduced. The finance minister also explained to the seminar participants why the government does not want to reject the cimdollar from the company. He said:
"We use both currencies and you will see shifts in one direction. We try to stabilize the Zimbabwischer dollar, and we have done a good job to ensure that the salaries are not eroded. The US dollar plays the role of a savings and investment currency, while the Zimbabwische dollar takes on the role of a transaction currency as an investment currency."
Do you agree to Ncube's arguments against the dollarization? Tell us your opinion in the comments below.
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