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By Torby Chimhashu

ZIMBABWE’S central bank on Monday delayed introducing a new set of currency until the New Year, insisting that it will do so in the second phase of its radical action aimed at weeding out imprudent financial practices.

Gideon Gono, the Reserve Bank of Zimbabwe governor promised a new currency “either in the festive season or just in the year” when he would have lopped off the troublesome zeroes from the country’s hyper inflation-hit currency.

Presenting his delayed mid year Monetary Policy Statement (MPS) in Harare, Gono said: “It’s over a year since we launched Sunrise 1 and slashed zeroes. I know some of them have returned inspite of my not wanting them.

“Sunrise 2 is coming and coming very soon. Foreign currency dealers and those who have assumed the role of the central bank by keeping large sums of money in their homes must not blame the Governor when the project comes. This time Sunrise 2 would be like a hurricane.

“There has been a lot of speculation but let me stress that we will bring a new currency either in the festive season or just after New Year. I don’t want those zeroes and the new currency won’t have those zeroes.”

In August 2006, Gono chopped off three zeroes from the Zimbabwe currency and invited the ire of foreign currency barons and Zanu PF big wigs who threatened him for disrupting their operations.

A week after lopping off the zeroes, unknown people visited Gono’s farm in Northern Harare and left a chilling message for the governor before a mysterious fire destroyed maize crop at his other farm in Norton a day later.

Gono said he would introduce even tougher measures in his project Sunrise 2 before he sets out a new currency.

Gono is seen maintaining the 1000 note as the largest denomination when he unveils a new currency.

At present, Zimbabwe is using a $200 000 bearer cheque as its largest denomination.

The central bank chief has twice delayed introducing a new currency after failing to stem rampaging inflation which is currently 6542%.

Zimbabwe has been using a set of family bearer cheques since July 2003 when the country experienced huge shortages of cash.

Gono had hoped to discontinue the cheques by the end of December. He believes he is still on course.

In his MPS, Gono hiked the interest rates to 850% but ruled out further devaluation of the local currency which he said will remain at 30 000 against the United States dollar.

“Over the outlook period, the Reserve Bank will implement the exchange rate framework as directed by the Ministry of Finance. This is in line with Section 47 of the Reserve Bank Act which explicitly gives responsibility to the Minister of Finance to set the exchange rate policy,” Gono said.

Other major highlights were the new incentives for gold producers who are set to benefit from a new price of $4 million per gram up from $3 million. Farmers and exporters were also given a boost on a day in which Gono kicked off with a prayer delivered by Bishop Trevor Manhanga.

Gono said Zimbabweans must acknowledge their limitations, insisting seeking wisdom from God remains crucial in the drive to revive the faltering economy.

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