Finance minister Mthuli Ncube says government is drafting reforms that will see Zimbabwe eventually introducing its own currency.
Ncube, who is in New York for the United Nations General Assembly, told Bloomberg TV in an interview that bond notes would remain in circulation until “fundamentals are conducive for the introduction of a local currency”.
“Over time, we will move back to a domestic currency, but that requires certain steps like fiscal consolidation around government expenditure and on the revenue front,” he said.
The renowned economist and former banker said Zimbabwe needed a stabilisation plan to be implemented within the shortest possible time.
Ncube said Zimbabwe was banking on increased tobacco, gold, chrome and platinum exports as it worked on plans for a new currency.
“There is no time frame, but we need these things to happen sooner than later,” he said.
“We need certain triggers such as that we need to have a full momentary policy committee that is working and be able to move to a market-based allocation of foreign exchange so that those who are exporting are able to have their accounts in foreign currency and keep those as their receipts and build those blocks of reserves.”
Ncube is the only Cabinet minister who accompanied President Emmerson Mnangagwa, whose delegation also includes Reserve Bank of Zimbabwe governor John Mangudya.
The minister said his vision was to create an investor-friendly environment and challenged African leaders to negotiate for better deals with China.
Mangudya also told Bloomberg TV that the new administration had put in place mechanisms to compensate white farmers who lost land during the land reform programme as a way of improving investor confidence.
Mnangagwa is pushing for increased foreign direct investment to reverse years of economic decline under former president Robert Mugabe.
He also wants to end Zimbabwe’s decades of international isolation due to human rights violations and electoral theft.
— The Standard