HARARE – The new special coins set to be introduced by the Reserve Bank of Zimbabwe (RBZ) are not linked to reintroduction of the Zimbabwe Dollar, Finance minister Patrick Chinamasa insists.
This comes amid rising suspicion that the coins are part of a scheme to return the local currency, abandoned in 2009 after ravaging hyperinflation.
But, Chinamasa said the coins – valued at par with the United States dollar – are meant to solve the problem of change in transacting.
“I am not a foolish minister, I do not make reckless decisions. I would be reckless to introduce the local currency at this juncture,” he said at a breakfast meeting in Harare last week.
“The small change introduction is in no way a subtle reintroduction of our currency,” he said, adding that the “plan will be backed by a $50 million facility to buttress the multi-currency regime”.
The coins will be imported from South Africa.
The Treasury chief noted that any currency needs an anchor in the form of production, “something Zimbabwe currently does not have, thus rendering it impractical” to reintroduce the infamous Zimbabwe dollar.
“Seriously, what is all this noise about these coins? They are simply meant for the convenience of consumers so that they do not eat sweets when they do not want to.”
“All we are saying is that sweet factories should be able to sell their own products without ridding on the change advantage,” he said.
He further stated that the move could possibly reduce commodity prices.
“Everything is pegged at a dollar consequently, so the availability of small change will give commodities their real value and protect the consumer form being overcharged,” said Chinamasa.
After ditching the Zimbabwe dollar, government adopted the multi-currency system – a basket of currencies dominated by the United States dollar and South African Rand.
Ecuador, another country that uses the greenback as its currency, has special coins, centavos, which have the same denomination and value as US coins. Daily News
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