The Finance Minister of Zimbabwe has said the chances of Zimbabwe either adopting the SA Rand as its main currency next to the RTGS dollar or joining the rand monetary unit was not under consideration.
Ncube spoke to the media that the adoption of the rand was not necessary as the country had completed its “currency changes”, on the sidelines of the third session of the bi-national commission between South Africa and Zimbabwe yesterday in Harare.
The monetary union stated that member states have a local currency of their own. These members of state currently are South Africa, Swaziland, Lesotho and Namibia. Zimbabwe last month introduced a domestic currency (RTGS) dollar which is a fusion of electronic bank balances, bond notes and bond coins.
The new currency is officially trading at 2.5 to the US dollar, according to the interbank market rate, whilst on the black market it is much weaker and trades at about 3.6 to the dollar.
“We have completed the currency changes and we want to continue now on the path of fiscal reforms. We need to be competitive and a local currency is necessary. The rand just like the US dollar, is foreign currency”, said Ncube.
As the economic crisis in Zimbabwe takes its toll, most industries in the country have recently expressed a desire for the SA rand to be used, given the close ties between SA and Zimbabwe. Experts have also discouraged the continued use of the US dollar as it is too strong for Zimbabwe’s economy.