US$ bouncing back, bond notes to go: Chinamasa's budget highlights

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Finance and Economic Planning minister Patrick Chinamasa presented the first Budget in the post-Robert Mugabe era this afternoon, which will act as measure of President Emmerson Mnangagwa's commitment to chart a new course for the economy amid rising fiscal deficits.

Minister Chinamasa has said the government has a need to import cash so as to deal with the serious liquidity crunch that has affected the country. This insinuate that there is no need to relay on Bond notes as a means of dealing with liquidity problems which affected the country.

The minister made the remarks during the presentation of the annual national budget. He also said the government needs to manage its expenditure to avoid the over spending and emphasized on the issue of amnesty on all those who have been externalizing cash to return it within three months.

Analysts said Chinamasa has to restore confidence by laying a strong foundation for the economy. Economist Clive Mphambela said Chinamasa has to address the pervasive issue of restoring the integrity of the multi-currency system by speedily revoking the bond note so that "we revert to the clarity and stability that was assured under proper dollarisation rules".


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