Government seeks to bring back local currency

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GOVERNMENT is working with friendly nations such as China and South Africa to reinvigorate the economy to levels that allow for the re-introduction of the local currency, Special Advisor to President Emmerson Mnangagwa, Ambassador Christopher Mutsvangwa has said.

According to State media Mutsvangwa told hundreds of people gathered to welcome his wife Monica Mutsvangwa, who was recently appointed Minister of State for Manicaland Provincial Affairs, in Mutare last week, that there was a lot of goodwill from Zimbabwe’s Asian friends, the Chinese, who had proposed a swap currency with the country.

“Such an arrangement will essentially establish a credit window for Zimbabwe to access capital goods from China to retool our industry,” he said.

“Industry will then be geared to produce enough to meet internal demand and to export, which will allow us to bring in a lot of foreign currency.

“If this happens, we can use that strength to re-introduce our currency because the healthy market performance of the economy will strengthen the Zimbabwe dollar in the long run and allow it to stand on its own.”

Ambassador Mutsvangwa said as the Zimbabwean economy matured in value, the Chinese would also benefit from the development, as they would be creating an export market for their stock.

He said the move would allow Zimbabwe to secure credit lines, which would allow it to access world class capital goods that would boost its economic performance through high production levels that had the potential to open up export avenues for local products.

He said President Mnangagwa’s taking over of the Presidency had boosted China and South Africa’s confidence in Zimbabwe’s economy.

“China and South Africa now know that once they open up credit lines for us, those lines will also create value in their countries, so trade will boom, which will allow our currency to have a powerful footing, so we will have a competitive economy as well,” said Ambassador Mutsvangwa.

“Germany has also made indications that it may be amenable with such as arrangement with Zimbabwe should it become necessary.

“Everything that we see happening on the international front at the moment is a demonstration of their confidence in the leadership qualities of President Mnangagwa, which is good for the economy.”

Ambassador Mutsvangwa challenged the province of Manicaland to take advantage of its proximity to the Indian Ocean and resuscitate the trade that used to happen in the past, saying the province’s capital, Mutare, should be Zimbabwe’s gateway to the outside world.

“Let us bring back Mutare’s glory as the export gateway of Zimbabwe and the rest of the country will follow suit,” said Ambassador Mutsvangwa.