Adopt rand now: Terrence Mukupe

Adopt rand now: Terrence Mukupe
Deputy Finance Minister, Terrence Mukupe

Deputy Finance Minister, Terrence Mukupe

ZIMBABWE should adopt the South African rand as its official currency on an interim basis as a way of stabilising the economy, deputy Finance Minister Terrence Mukupe has said.
This also comes as the country’s liquidity position remains tight and there have been desperate calls by various stakeholders such as industrial bodies for a solution to the chronic issue or problem, which President Emmerson Mnangagwa has tried to cure by implementing a number of policies including attracting foreign investments.

Read full story in The Financial Gazette paper

  • Agriculturalist

    Please advise me. I am puzzled to hear that authorities at the helm of the Finance and Economic Planning ministry are advocating for the adoption of the South African Rand to stabilize the economy. My confusion is emanating from the headline “Adopt rand now: Terrence Mukupe”. Who actually spearheads adoption of foreign currency for official use…. RBZ or The Finance ministry? Or should adoption be done by the populace of Zimbabwe? I am also of the opinion that issues to do with adoption of foreign currency are governed by policy. What is the policy position pertaining to the adoption of the Rand as an interim official currency? If that statement will have the effect of adoption of the Rand as an official currency, then we, as citizens are eagerly waiting to see it to fruition and hope that bank queues will disappear as a result of this policy trajectory.

    • Zvichapera

      Rand or no Rand adoption will not help in our situation, as the Government has created fictitious money through its unrestrained borrowing through the RBZ. Just adopting the Rand will not bring Rand in Zimbabwe, as our bank balances are hot air and can not be readly converted into any real currency. This Mukupe guy knows the truth and he is playing politics.

    • Steven Murungweni

      i think Mukupe was suggesting the adoption of the Rand from a fiscal perspective, but since the issue of the currency in use is purely a Monetary Policy issue, he should probably suggest this to Mangudya. Perosnaly I think we are better off adopting the Rand and benchmark our economy with South Africa as it would be easier to monitor progresss and policies that would bring us out of this economic wilderness.

    • bona pombiyatyoka

      i agree with you agriculturist . Terence is the head of the treasury so i personally wouldn’t have expected him to come out in the media advising the government to adopt the rand .

  • Mike Dhliwayo

    I agree with the Dep Minister’s proposal. Kill the Bond ….it is the cause of our misery along with its long discarded cousins the bearer cheques and the quintillions etc …anything called or labelled as being akin to or purporting by proclamation to have value assigned to it is like a fake jewel or fools gold (brass).
    The adoption of the Rand is a strategy to restore dignity to a people that need to relieved of their hard life and long suffering….its not a sentimental move but a pragmatic business decision….

  • Zvobgo

    Why does Mukupe not say this in parliament or cabinet?

    • TC

      kkkk. Deputy ministers don’t sit in cabinet VaZvobgo

      • Zvobgo

        I said paramende oro cabinet dummy

  • Emerald

    Mozambique does not use the Rand. Neither does Zambia, Botswana, or other countries in the region who each use their own currencies with no problem. Prior to the 2000s, Zimbabwe used its own currency relatively well. The solution is not to “adopt” the Rand but to stabilize our economic environment.

  • Lionel Teveraishe

    Concerning the issue of currency solution, the best approach would be to take a forward view of the country by banking on its potential to generate the much needed foreign currency reserves to support the reintroduction of a local currency. The multiple currency system was an effective stabilization tool , mainly to deal with hyperinflation , it may not be the best to support an economic growth phase.

  • Vuyani

    think its best we adopt the rand, in this short period south Africa is our major trading partner we trade about 60-70% with south Africa and almost nothing to united states ,they over 3 million Zimbabweans in south Africa meaning the rand would come as a remittance from south Africa, using the optimal currency theory as the basis of this zim would surely stabilize the economy and wipe away bond notes ,because bad money chases away good money no wonder we see less of the usd dollars now and more of the bond notes.When the economy is stable in the long run the effects of increasing fdi would further stabilize the situation and improving the supply side of our economy #my humble opinion

    • Lionel Teveraishe

      This is a totally wrong approach Cde, coz SA is not our final trading destinition and based on the worsening economic deterioration , liquidity problems, and the challenges of bond notes, the question of surrendering our sovereignty to SA as a nation by adopting the SA rand , yes will subject us to scrutiny, and test our sincerity and seriousness to engaging in economic reforms

      • Lucky Mudimba

        What sovereignty are talking about u bafoon

    • Lionel Teveraishe

      The reality on the ground is that Zimbabwe is fastly being forced out of the multiple currency system. As such there is a need for a bold action to start working towards the reintroduction of her own currency, not just for the sake of formalizing de-dollarization , but because of the merits of this economic imperative .With its own currency, Zimbabwe will be able to
      achieve currency stability as well as monetize budget for growth as long as the funds there from are applied towards enhancing productive capacity.

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