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Tuesday, May 21, 2024
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Multi-currency system valid until 2030

Multi-currency system valid until 2030

Story by Stanley James, Business Editor

PRESIDENT Emmerson Mnangagwa has extended the use of the multi-currency system until December 2030.

In a Statutory Instrument issued this Friday, President Emmerson Mnangagwa granted authority to the use of foreign-denominated currencies within the economy until 31 December 2030.

The move is being made to consolidate the current economic gains on the fiscal and monetary side.

The Statutory Instrument therefore indicates that the United States dollar which is dominating foreign currency transactions shall continue to be among the country’s legal currencies until 2030.

The President stated that transactions in the foreign-denominated currencies will continue to be undertaken alongside the Zimbabwe dollar.

According to the Zimbabwe National Statistics Agency, about 80 % of the country’s transactions are being done using the US dollar.

The move is also being made in line with the country’s vision of becoming an upper-middle-income society by 2030.

It is being made when the government has noted significant milestones in economic growth, averaging over 5% in the past three years.

Initially, the authorities had pegged a 2025 deadline for the end to the use of foreign currencies.

The use of the multiple currency regime is also in line with the National Development Strategy One growth targets of at least 5% per year.

Central bank authorities recently reiterated that while the use of foreign currencies alongside the Zimbabwe dollar continues, they are also rebuilding gold reserves to ensure adequate fundamentals are in place for the exclusive use of the local currency in the short to long term.

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