Zimbabwe will continue using the multicurrency system, at least in the near future, according to the Reserve Bank of Zimbabwe (RBZ).
The apex bank moved quickly today to dismiss widespread reports that it could possibly announce the introduction of a new currency before the end of this month.
The rumors were instigated by former Finance Minister Tendai Biti on his Twitter account this morning.
They were further fuelled by protracted delays by the RBZ in announcing its Monetary Policy Statement, which usually comes out each January.
“The Reserve Bank of Zimbabwe would like to urge members of the public to dismiss, with utmost contempt, claims being circulated on social media regarding the introduction of a new Zimbabwe currency,” said the central bank in a statement today.
“The country shall continue to use the multi-currency system.”
In January 2014, the RBZ announced that the US dollar, South African rand, Botswana pula, Pound sterling, Euro, Australian dollar, Chinese yuan (renminbi), Indian rupee, and Japanese yen would all be accepted as legal currency within the country.
And between 2014 and 2016, the RBZ introduced bond notes and coins, touting them as an ‘export incentive’. But they have largely turned out to be a surrogate currency.
According to the central bank the notes are stated to not be a currency in itself but rather legal tender near moneypegged equally against the U.S. dollar.
The RBZ’s denial of an introduction of a new currency flies in the face of earlier statements by Finance and Economic Development Minister Professor Mthuli Ncube that Government is actively looking to introduce a local currency.
Interestingly, FM Mthuli has come out today and defended both his earlier statement and the RBZ one.
“He (former Finance Minister Tendai Biti) is not in government, we are… I think he is free to comment on anything frankly and also as a member of the opposition, that always welcome, it keeps us on our toes.
“However, we have policies, we will do it (introducing the Zim Dollar) when we are ready. We have a game plan, we have a roadmap, we will do the needful when the conditions are right,” said Ncube.
“I cannot give a timeline but I have always said and been consistent in doing so, that in 12 months’ time we should have our own currency in the monetary system and I still maintain that.”