By Lloyd Takawira
In a sudden turn of events, the Reserve Bank of Zimbabwe (RBZ) lifted its proscription on use of foreign currency in carrying out internal transactions.
It further abandoned the managed floating exchange rate as a measure to facilitate transacting during the COVID 19 period.
A statement issued by RBZ governor John Mangudya said the measures were aimed at easing the financial pressures brought about by the global pandemic.
“Government through the RBZ would like to advise the public that it is making it easier for transacting public to conduct business during this difficult time by making available an option to pay using free funds (foreign currency) for goods and services chargeable in local currency.
“The dispensation to use free funds will not only make payment for goods and services easier but will also promote social distancing as banks will be able to provide digital financial services to their customers that include producers of gold, tobacco and cotton and recipients of diaspora remittances.” reads the statement.
However, Zimbabweans have been clamouring for the repealing of Statutory Instrument 33 and 143.
Former Finance minister, Tendai Biti said the government had now conceded that use of the local currency was not viable.
“The regime has radically done a volte face and sneakily re-dollars. We told them it wouldn’t work and won’t work. They owe Zimbabwe an apology and they should now bring a Bill to Parliament formally repealing those sections of the Finance Act that incorporated Statutory Instrument 33 and 142 of 2019 1/3,” he said.
Prominent ZANU PF supporter, Kudzai Mutisi wrote, “foolish policies here …Stupid to the core. Where exactly did these people learn all this nonsense? Fixing an exchange rate in 2020? Who will follow that ???
Dampness at its best!
Award-winning journalist Hopewell Chin’ono said “dzokororo inesimba . From the best finance minister. We told them that they will re-dollarize, they called us haters for sticking to real economic principles and common sense. Rest in peace Zimbabwean dollar! “
Kholiwazi Nyathi said ” Living in Zimbabwe is an extreme sport. So everyone now has free to charge in US dollars including landlords and vendors. Using #COVID -19 as an excuse to re- dollarize.”
Exiled former cabinet minister, Jonathan Moyo said, “@RBZ has suspended the “managed ” floating exchange rate and replaced it with a fixed exchange rate is meant to benefit the private sector called “sakunda”.
