MASVINGO – Christopher Mugaga, the CEO of the Zimbabwe National Chamber of Commerce (ZNCC), has emphasized the necessity for the government to de-dolarise the economy to stabilize the Zimbabwean currency (ZiG).
Mugaga made these remarks during the ZNCC-organized Monetary Statement and Structured Currency review breakfast in Masvingo, where Reserve Bank Governor, Dr. John Mushayavanhu, was the guest of honor.
Addressing attendees, Mugaga asserted that the ZiG would continue to struggle as long as the US dollar remains one of the official currencies.
He urged the nation to focus on transitioning away from the US dollar, stating, “At one point I was scratching my head and saying to myself why did we allow multi-currency to come into play. Why not just use the Zimbabwean dollar and see how it goes.”
Mugaga highlighted the inherent challenges of a multi-currency system, emphasizing the difficulty in avoiding arbitrage and speculation. He proposed a bold approach, suggesting a complete shift to the ZiG to gauge its effectiveness as a legal tender.
Drawing parallels, he noted the struggle of the South African Rand against the dominance of the US dollar in Zimbabwe’s economy.
Expressing concern over currency management, Mugaga criticized the reliance on delegated Statutory Instruments (SIs), advocating for a more fundamental approach to currency stability. He urged banks to collaborate closely with the Central Bank and the business community to restore confidence in currency management, citing past failures such as the introduction of bond notes and subsequent attempts at currency reform.
Mugaga reiterated the role of the ZNCC as the voice of the business community, emphasizing the need for sustainable solutions to the challenges facing Zimbabwe’s economy.
