RBZ shelves plans for new currency

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ZIMBABWE'S central bank chief said Sunday he had shelved plans to introduce a new currency in a bid to rein in galloping inflation and wanted to direct efforts towards increasing supply of goods and services.

Central bank governor Gideon Gono told the state-run Sunday Mail that the launch of the currency would not be anytime this year.

“Although all the preparations are in place, the launch is not until next year,” Gono said. “Some people have already burnt their fingers by trying to offload the Zimbabwe dollar for the greenback at ridiculous rates. They thought they were beating the governor, but tough luck.

“What I can say is, relax guys. But at the same time, the country should be on high alert for only the Reserve Bank of Zimbabwe and its principals know when the lightning bolt will strike.”

Since September, the local unit has officially been pegged at Z$30 000 to the dollar, although on the black market it has slid to about Z$950000-Z$1,2m .

Last month, Gono had said the central bank would phase out the cash in circulation. He warned businesses and individuals from keeping huge sums of money, saying that they would risk losing it as the central bank would impose strict deposit thresholds during the changeover to the new currency.

Zimbabwe is in the midst of an economic crisis characterised by the world’s highest rate of inflation — at nearly 8 000% .

Gono stressed that obtaining foreign currency on the black market was illegal.

“What we want to see emerge from the current debate, however, is a situation where the business community is allowed to operate viably so as to avoid the loss of jobs, competitiveness and the loss of business,” he said.

“For the people of Zimbabwe, the current battle is ensuring survival through the ability to get basic goods and services at affordable and yet viable prices.”

In June, the government ordered businesses to halve the prices of goods, accusing them of fuelling inflation .

Last month, Gono pledged that empty shop shelves would soon be replenished as he denounced the “anarchy” inspired by the government’s order for retailers to slash their prices in half. Sapa-AFP

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