Zimbabwe-Economy

Zimbabwe dollar's future inspires confidence - minister

APA-Harare (Zimbabwe)

The future of the Zimbabwe dollar inspire confidence in the government to continue to maintain it as legal tender, a senior official has said.

Speaking at a business bazaar in the country's second city Bulawayo on Friday, Finance and Economic Development Minister Mthuli Ncube said the Zim Dollar has a bright future.

Ncube told local businesspersons: "The future of the Zim dollar is bright, you are abusing it, we will use  it. And as a government and together with you the private sector, I  believe we’re on the right track".

His vote of confidence in the local currency comes exactly a month after the Zimbabwe government introduced the so-called Auction Trading System.

This allowed the government to remove the fixed exchange rate of $1: ZWL$25.

Under the new system, the value of the US currency against the Zim dollar has dropped to $1:72,14.

Statutory Instrument 185 gazetted recently stipulates that business entities providing goods or services in the country should quote their prices in both Zimbabwe dollar and a foreign currency at the current exchange rate.

Over the past ten years Zimbabwe has been beset by galloping inflation, leaving the local currency to be one of the most devalued in the world.


WN/as/APA

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