US$6 million to phase off Zim dollar: Biti

biti_tendaiHARARE - The country is expected to spend US$6 million to complete the formal demonetisation of the Zimbabwe dollar, according to Finance Minister Tendai Biti. The government, almost without notice, shelved use of the Zim dollar last March, leaving businesses and individuals stuck with transactions and obligations worth trillions of Zim dollars that were instantly

“Formal demonetisation should allow for settlement of all remaining Zimbabwe dollar transactions and obligations prior to the introduction of the multiple currency system as well as the revaluation of all other Zimbabwe dollar balances for accounting purposes,” Biti told lawmakers in his budget presentation.

He added: “At the present moment, estimates indicate that about US$6 million will be required to purchase the entire stock of Zimbabwe dollar balances with banks as well as cash outside the banking system. However, current capacity to raise the required US$6 million is limited.

“I am, therefore, proposing that Zimbabwes debt to the economy arising out of demonetisation be handled on the same terms and legal framework that I will propose to govern some of the debt obligations of the Reserve Bank of Zimbabwe. “Implementation details, which will take into account the necessity of protecting holders of small balances will be announced at an appropriate time.”

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