Zimbabwe to introduce domestic currency.

The reintroduction of the new currency by Zimbabwe will be possible only when conditions are ripe and critical economic fundamentals are in place, as using US dollar as an anchor currency is now unsustainable said Mthuli Ncube( Finance and Economic Development Minister). Zimbabwe used US$ 300 million to import the US dollars, that were circulating in the economy, used for daily transacting by both citizens and corporates. After attaining the right fundamentals, Zimbabwe will reintroduce domestic currency within 12-18 months.

Through the Transitional Stabilisation Programme (TSP), which was launched by the Minister in October last year-  the conditions will be set for the return of the domestic unit. The objectives of TSP include fiscal consolidation and addressing the twin evils of budget and current account deficits, economic growth, stemming out corruption, global reengagement, strengthening resource mobilisation, promoting investment and trade among others. Since February 2009, Zimbabwe has been using a multi-currency system which is dominated by the US dollar, after scraping its domestic unit, which had been ravaged by inflation following nearly a decade of economic upheaval.

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