ZCP pushes for the return of multi-currency regime

The Zimbabwe Communist Party (ZCP) is pushing for a return to the multicurrency system saying for now it is the only way the country can move forward economically.

On June 24, the government banned the use of foreign currency, which had been in place for 10 years since February 2009.

The multicurrency regime anchored on the United States dollar, as the currency of reference, included the South African Rand and the Botswana Pula which were predominantly used as currencies of transaction following the collapse of the local currency.

The bond notes and coins which were initially at par with the greenback over time depreciated, leaving businesses with no choice but to continuously hike prices of basic commodities in local currency.

In trying to address the problem, the government instead reacted by outlawing the use of any other currency other than the local currency.

However, since then, prices of basic commodities have been skyrocketing beyond the reach of many while civil servants continue to demand pay hikes.

In its inaugural elective congress late this month in Bulawayo, ZCP, formed two years ago, said there was a need for Zimbabwe to build a democratic economy anchored on a multicurrency regime.

“Even while this government remains in power, we will continue to put pressure on this government to return to a multicurrency regime but with the Rand as currency of reference,” said ZCP leader, Ngqabutho Mabhena.

Mabhena explained that Zimbabwe did not need to join the Rand Monetary Union in order to do that.

He said the Rand was easily accessible compared to the United States Dollar which has since become scarce.

The country, according to Mabhena can begin rebuilding the economy while the Rand is in use and then later reintroduce the local currency.

There have been increasing calls from a number of stakeholders for the government to reconsider its decision of banning the multicurrency system with some urging the powers-that-be to redollarise the economy next year.

The government has however remained adamant that there is no going back on the multicurrency regime.

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