Adopt the Rand – MWBF

south_african_randCHINHOYI - The Mashonaland West Business Form (MWBF) last week urged Finance Minister Tendai Biti to reconsider the idea of adopting the South African rand as the official currency, saying the current currency situation was causing a lot of confusion.

The current system of multiple currency has a of lot challenges, especially on the issue of cross rates and lack of smaller denominations, MWBF chairman, Mark Peters, said.

Although the adoption of multi-currencies halted hyperinflation, the lack of smaller denominations has affected business transactions, especially in supermarkets and in the transport sector. As a body we welcome the multi-currency regime because it has stabilised the economy, but we appeal to minister Biti to consider joining the Common Monetary Union (CMU) by randfying the economy. Our members are having transactions problems with their customers and exchange rates are also causing problem in the business sector, said Peters.

Although the inclusive government said it wanted the Zim dollar to be re-introduced once the economy was on a sustainable path to recovery and industrial capacity utilisation was above 60 percent, Peters said multiple currency use should remain in place as a solution to the economic crisis. The use of multi currency should remain in the medium term, said Peters. A local economist and business consultant, Ricardo Bevura, said introducing the Ran would save the poorly paid majority of workers from the jaws of unscrupulous business people.

However, Peters said the government should come up with a revolving fund so as to assist the recapitalisation of the broke industry. In his address during the 2011 National Budget presentation, Finance Minister Tendai Biti said negotiations were currently underway between the ministry and United States of America treasury to release coins to ease transactions problems.

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