Bond vs US: Finance Minister's Stance Confusing

Harare - A day after saying that, “the market has said these currencies [US dollar and bond notes] are not at par. I don’t want to argue with the market,” the Finance minister's has reiterated government's commitment to preserve the value of the surrogate currency.  

Professor Ncube was addressing the British think-tank Chatham House in London, adding that, “The bond notes will, at some point, have to be demonetised and I cannot tell you (when that will be).” 

“Government recognises concerns surrounding RTGS deposits, and we commit to preserve the value of these balances on the current rate of exchange of 1 to 1, in order to protect people’s savings,” said Ncube.
Zimbabwe Finance Minister 

“In view of the need for an orderly currency reform programme that will be followed when the economic fundamentals are right to do, the country shall continue to use the multi-currency system which was put in place by Government in 2009.” 

“The market is setting the pace. What is left for us is choreography and management of the economic fundamentals. The economy has dollarised. RTGS [real time gross settlement] balances are over

Zimbabwe currently uses a multicurrency system and Finance Minister Mthuli Ncube said the system will be maintained going forward until specific ‘fundamentals’ are aligned.

Treasury added that it is also reinforcing Nostro foreign currency accounts with a statutory instrument (SI) to guarantee that these are private deposits, and neither the Reserve Bank nor Government can have access to them. - Online Sources 

0 comments :

Post a Comment