23 March 2017
   
New Zimbabwe Header
Mudede’s department refusing bond notes
Tsvangirai: We will flood the streets
Mutasa jeered at opposition rally
Ditch bond notes – say Minister, RBZ
PDP: Punish Mugabe for 2mln jobs lie
Panners kidnap, sjambok mine owners
Tsvangirai, Biti, Mutasa at anti-ZEC rally
Grace stages demo against own allies
MORE NEWS
$40m lost as broke govt nixes travel promos
Imara to exit Bots Stock Exchange
MORE BUSINESS
Poem lampoons President Mugabe
$300 fine or jail for smuggler Tich Mataz
MORE SHOWBIZ
Billiat explains brush with armed robbers
Mapeza names Zim squad for Zambia
MORE SPORTS
Biometric vote (BVR): Dispelling the Myths
2018 poll: Last chance or lost chance
MORE OPINION
 
2018 and Zanu PF’s liberation war DNA
Twin evils wrought by today's prophet
MORE COLUMNISTS
 
 
RBZ urges gold-backed Zim dollar
15/05/2011 00:00:00
by Business Reporter
 
Ditched ... RBZ urges currency re-think
 
RELATED STORIES
Is Bitcoin the answer to Zim currency woes?
Chinamasa statement on Zim dollar
RBZ quashes Zim dollar speculation
Why it is difficult to bring Zim dollar back
No immediate Zim dollar return: Gono
Officials in new push for Chinese Yuan
Gono, Zanu PF push Zim-dollar return

THE central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered.

Government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African Rand and the Botswana being the most widely used.

Finance minister Tendai Biti says the country needs at least six months import cover and a sustainable track-record of economic growth, inflation stability and above 60 percent capacity utilisation in industry before the Zim dollar can be brought back into circulation.

However central bank chief, Dr Gideon Gono said the country should consider adopting a gold-backed currency.

“There is a need for us to begin thinking seriously and urgently about introducing a Gold-backed Zimbabwe currency which will not only stable but internationally acceptable,” he said in an interview with state media.

“We need to re-think our gold-mining strategy, our gold-liberalisation and marketing strategies as a country. The world needs to and will most certainly move to a gold standard and Zimbabwe must lead the way.”

Gono said the inflationary effects of United States’ deficit financing of its budget was likely to impact other countries to leading to a resistance of the green back as a base currency.

“The events of the 2008 Global Financial Crisis demand a new approach to self reliance and a stable mineral-backed currency and to me, Gold has proven over the years that it is a stable and most desired precious metal,” Gono said.

“Zimbabwe is sitting on trillions worth of gold-reserves and it is time we start thinking outside the box, for our survival and prosperity.”



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark
 
 
 
comments powered by Disqus
 
RSS NewsTicker