Type to search

The new Zim dollar will fail again – Mbizo MP

Business Latest

The new Zim dollar will fail again – Mbizo MP



KWEKWE – Mbizo Constituency MP, Corban Madzivanyika is giving the newly introduced Zimbabwe Gold (ZiG) currency no chance of success because the issues that led to the collapse of previous currencies have not been addressed.
He also blasted the Reserve bank for ambushing the nation with the new currency and called on Government to fully dollarize.
Madzivanyika said there is no confidence and trust in the currency with Government itself being the biggest culprit by refusing to accept it in the payment of passports, birth certificates, electricity, fuel, taxe and duty at the border.
He also said crucial factors like disputed elections, financial discipline and corruption needed to be addressed and boost confidence before the introduction of the ZIG currency.
“The ZIG currency like all others before it is doomed to fail because the real problems have not been addressed. We need to have confidence in ZIG for it to succeed but as it is even Government does not have confidence in the currency.
“Government must be the first to show confidence in their own currency and to do that all vital services such as Central registry fees (Passports, birth certificates etc), electricity, fuel, vehicle licensing, Toll fees and all statutory fines should be exclusively payable in ZiG,” said Madzivanyika.
“No economy will flourish when the political leadership ‘s ascendancy to power is disputed,” he said.
“In light of the impending failure of ZIG, I suggest full dolarisation of the economy because RBZ in its Monetary policy pronouncement, admitted that 80% of Zimbabwe’ s transactions are now in USD which means that the country has dollarized.
“This will eliminate the Exchange rate volatility and hyper inflation at least in the short to medium term,” he said.

Leave a Comment

Your email address will not be published. Required fields are marked *


Enjoy our stories? Please spread the word: