We don’t want foreign currency, we want our Zimbabwean dollar: VP Chiwenga

Vice President Chiwenga has spoken against dollarisation and the black market in Zimbabwe. He argued that dollarisation would hamper Zimbabwe’s economic progress as people were now devaluing the local dollar in favour of the US dollar. He also blamed the black market for causing prices to rise.

The black market has led to price hikes. We can’t afford our daily needs. It has also led to our local currency losing value. So the government is in the process of fixing this mess. Those found on the wrong side of the law will be dealt with accordingly.

We have warned you and we are going to make sure that you won’t come out of jail if arrested. We are going to introduce hefty measures. So people, please help us catch those wrongdoers who are dragging us behind.

Using other currencies brings nothing, but poverty. The use of United States dollars is devaluing our local currency.

The use of US dollars came after the Global Political Agreement (GPA) and the likes of (Tendai) Biti (former Finance minister) wanted to use foreign currency. We do not want foreign currency, we want our Zimbabwean dollar.

Remarks made by VP Chiwenga as reported by Newsday

Government firmly against dollarisation

The government has made it clear on several occasions that they are against dollarisation. They contend that dollarisation limits their policy options as they cannot fully implement their own monetary policy. Instead, they will be forced by virtue of dollarisation to hand over some of their powers to the US Federal Bank something they vehemently oppose.

The problem though is that thanks to rush tactics, policy ambushes and wanton money printing, Zimbabweans, in general, do not trust the government and its Zimbabwean dollar. While most people don’t mind transacting using the Zimbabwean dollar, no one not even the government itself or its officials are willing to use the ZWL as a store of value. That role belongs firmly to the US dollar.

Also, the government itself has recently acknowledged that they are partly to blame for black market movements. Ordinary members of the public are not the ones causing the rate spikes we see. That role is held by government contractors who are busy helping the government build infrastructure such as dams, roads etc. They get paid in ZWL and rush to the black market to vacuum up USD at whatever rate is available pushing demand up.