Zimbabwe’s Deputy Finance minister Terrence Mukupe has recommended that the country adopt the South African rand as its official currency on an interim basis as a means to stabilize the country’s economy.
The liquidity position in the country remains tight and various stakeholders, especially those in the industrial bodies, have called for solutions to this never-ending problem.
President Emmerson Mnangagwa has tried addressing a few solutions to this issue, one of which is attracting foreign investments into the country.
Mukupe said, “It is a good thing to join the Rand Monetary Union (RMU) as a temporary measure, the same way we adopted the bond notes to stabilize the economy”. The deputy Finance Minister also made it known that joining the Rand Monetary Union will give Zimbabwe access to deeper financial markets in South Africa such as bonds markets which they don’t have access to in Zimbabwe.
South Africa, Lesotho, Namibia and Swaziland are all part of the RMU. There have been numerous calls by stakeholders around the country for the government to adopt the rand as there are beliefs that it will make the Zimbabwean industry more competitive against fellow counterparts in Africa and around the world.
Photo Credit: Masasi eHarahe