Zimbabweans allowed to trade in multiple currencies

Zimbabweans allowed to trade in multiple currencies

HISTORIC: Acting Finance Minister Patrick Chinamasa unveiled 2009 budget presented in United States dollars for the first time

• Zimbabwe's 'dollarised' budget

• Chamber of Commerce wants full dollarisation

• Lance Mambondiani: Why financial sector must be dollarised

• Joram Nyathi: Dollarisation a blow Zanu PF cannot survive

By Nelson Banya
Posted to the web: 29/01/2009 16:11:11
ZIMBABWEANS will be allowed to conduct business in other currencies, alongside the Zimbabwean dollar, in an attempt to tackle soaring inflation, acting Finance Minister Patrick Chinamasa said on Thursday.

The collapse of Zimbabwe's currency is a sign of the deepening economic crisis, which shows no sign of ending without concrete moves by President Robert Mugabe and the opposition to implement a power-sharing agreement.

"The government is allowing the use of multiple foreign currencies for business alongside the Zimbabwean dollar," Chinamasa said in a budget speech, presented in U.S. dollars for the first time.

"In the hyper-inflationary environment characterising the economy, our people are now using multiple currencies alongside the Zimbabwean dollar. These include the (South African) rand, U.S. dollar, Botswana pula, euro and British pound among others."

Chinamasa projected Zimbabwe's gross domestic product at $5.5 billion (£3.9 billion).

A power-sharing agreement reached in September between Zimbabwe's political rivals, seen as a chance to ease the humanitarian crisis and save the faltering economy, has yet to be implemented.

Opposition leader Morgan Tsvangirai has said he agreed to form a government with President Robert Mugabe although some in his Movement for Democratic Change voiced disappointment with the deal reached at the summit. MDC officials are expected to meet on Friday to discuss how to proceed. - Reuters

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