Zimbabwe dollar to be shelved at least one year


Zimbabwe’s Minister of Economic Planning and Development Elton Mangoma, who leads a government cluster on economics said during a ministerial retreat held in Victoria Falls recently that the ministries had resolved that the local currency must be shelved for at least one year.

He said the cluster resolved that it was not prudent to talk about the local currency when the country’s productive sector was still far below par.

"The Zimbabwean dollar will be out for at least a year. We resolved that there will be no immediate plans to introduce the money because there is nothing to support and hold its value," he said.

The official also said focus at the moment was on the use of the multiple foreign currencies to ensure that the production in industries is lifted to more than 60 percent.

Zimbabwean Financial Minister Tendai Biti officially declared the local currency moribund when he announced his revised budget last month.

As inflation continued to skyrocket, many people and industry lost faith in the local currency, forcing the government to introduce the use of foreign currencies.