Mubati wehomwe mukuru Va Mthuli Ncube voronga kubvisa US Dollar zvachose kuti Zimbabwe isare ichishandisa ZiG, Only By 2030?”: Mthuli Ncube Reveals Conditions for Phasing Out US Dollar in Zimbabwe
Finance Minister Mthuli Ncube has outlined the conditions Zimbabwe has to meet to successfully phase out the US dollar and use the local currency only.
He said Zimbabwe needs to reduce its debt andHe said Zimbabwe needs to reduce its debt and build its foreign currency reserves before it can resort to a monocurrency. Currently, the country is using a multi-currency system, which includes the local Zimbabwe Gold (ZiG).
Mthuli said Zimbabwe needs to ensure it has enough foreign currency reserves to be able to cover six months of imports. He said this is to ensure that the ZiG doesn’t lose value.First of all, we’ll need to be sure that we have adequate foreign reserves to be able to defend the domestic currency, the ZiG, whenever it comes under any speculative attack.
There’s certain rules and benchmarks around the world such as six months import cover, for example, so we’re then able to cover six months of imports without further inflows. Really it’s about being able to defend the currency when it’s under speculativeFirst of all, we’ll need to be sure that we have adequate foreign reserves to be able to defend the domestic currency, the ZiG, whenever it comes under any speculative attack. There’s certain rules and benchmarks around the world such as six months
import cover, for example, so we’re then able to cover six months of imports without further inflows. Really it’s about being able to defend the currency when it’s under speculative attack,” Mthuli explained.He explained that Zimbabwe needs to clear its US$21 billion external debt so that the country can access a balance of support
