Zim adoption of four new currencies a ‘chaotic non-starter’

RBZ announced that the Chinese yuan, Japanese yen, Indian rupee and Australian dollar will be accepted

By Alex Bell
SW Radio Africa
30 January 2014

The introduction of four new foreign currencies as legal tender in Zimbabwe has been described as a ‘non-starter’ that could cause chaos in the commercial sector.

The Reserve Bank of Zimbabwe (RBZ) announced Wednesday that the Chinese yuan, Japanese yen, Indian rupee and Australian dollar will be accepted, with Zimbabweans and exporters able to open accounts in the various currencies.

Zimbabwe’s multi-currency system, adopted in 2009 to override the worthless local dollar, means the US dollar, South African rand, Botswana pula and British pound are already considered legal tender. The majority of Zimbabweans primarily use the US dollar and South African Rand, while import prices are mostly set at the US value.

But an increase in trade, mainly with the Eastern market, means more currencies will technically be considered legal tender this year.

“Trade and investment ties between Zimbabwe, China, India, Japan and Australia have grown appreciably,” said RBZ acting governor Charity Dhliwayo.

Dhliwayo added: “It is against this background of growth in trade and investment ties that in the 2014 national budget, the minister of finance and economic development underscored the importance of including other currencies in the basket of already circulating currencies.”

Concern has been raised about the potential chaos this could cause for many Zimbabweans, with cash shortages and fluctuating exchange rates adding to an already difficult economic climate.

Most recently, SW Radio Africa reported how Zimbabweans have started abandoning the use of the neighbouring rand, because of its falling value.

The potential for more chaos is now high, with multiple currencies and exchange rates posing fresh challenges for the average trader.

Economist John Robertson told SW Radio Africa that the “whole idea will fall very flat,” with the majority of people, who will likely keep using the US dollar.

“We don’t need these other currencies. The country prices most of its imports and exports in US dollars and that is what people want to be paid in. The only exception is the rand, especially in the southern part of the country,” Robertson said.

He added that the potential confusion for local traders means it is unlikely that the other currencies will be welcome. The economist explained that on top of valuing their items according to the new currencies, most traders would eventually have to convert the money into US dollars anyway. They would then have to pay an additional conversion fee at the banks, in order to pay for new goods imported using the US value.

“So I think most traders will be very annoyed if people start using the new currencies, and I think you’ll see in a few months that people will say it’s not working,” Robertson said.

Economic analyst Vince Musewe meanwhile agreed that the average Zimbabwean is unlikely to be affected much by this development, because the preferred currency will remain the US dollar. He said the basis for the RBZ decision was driven by the government’s ‘Look East’ policy.

“The idea is that it makes it more attractive for them (Eastern traders) to come to Zimbabwe and do business in Zimbabwe. So for example someone from China, which is a major investor at the moment, can come to Zimbabwe and use their own currency,” Musewe said.

He said the changes will likely only be seen at Chinese markets and shops, but for general Zimbabwean traders “their way of doing business is not going to change because people will still use the US dollar.”

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31 Responsesto “Zim adoption of four new currencies a ‘chaotic non-starter’”

  1. Chimbwido Warvet says:

    These currencies have been in use already and will not have any negative effects to the country. It is pure scaremongering we have often heard over the years from economist John Robertson. This guy has been known for being controversial and was totally opposed to the country’s economic ties with the Far East. He is totally opposed to the country’s land acquisition and the indigenisation of the economy. Robertson is anti everything proposed by this government. I can only say, let us wait and see if the introduction of these currencies as our legal tender will not work than accepting the advice of an economist whose agenda has been unclear since this country became independent in 1980.

    • succuba says:

      Can you tell me Chimbwido why Zimbabwe has no currency of its own?

    • Tiger Shona says:

      As for Robertson, he has credibility, and you have none. Anyone that read these comments and have are honest and hardworking people, knows that you were posted here to deflect criticism against Zanu PF.
      And what is more, like we have seen many times you will say anything, just for the sake of offering an opposing opinion.
      Bottom line is, you are corrupt, just like the crew you are defending.
      You will deny it again, but you are a liar.

      • Chimbwido Warvet says:

        The topic for debate is captioned, ”Zimbabwe adoption of four currencies a chaotic non starter”. That is essentially the area I will be interested to direct my energies in addressing, Tiger Shona. To this extent, my mind is very clear. If you read my comment again you will note that am very focused. I can not be diverted by anybody to venture into areas that are irrelevant to the subject matter, just to please you.
        By the way, you can only post a parcel or letter. Nobody posted Chimbwido Warvet. And if I do not agree with the nonsense that is peddled by this pirate radio station, it does not imply that I will be defending ZANU PF. I am not the representative of the ruling party and neither does anyone pay me for speaking my mind. Remember this is a pirate radio station and whatever it peddles will invariably be against the majority of the Zimbabwean people excluding you.
        Having said my peace of mind, can you now give us your comments in respect of the subject under review, please.

        • Tiger Shona says:

          There is no point. Like I stated before, you will oppose anything that is anti Zanu PF, and many times your comment has nothing to do with what the guy wrote before you.
          I know what happens in Zimbabwe, and I can assure you, that at this time, you will be an enemy to most Zimbabweans. Proof?? just look in these very columns!
          And you are repeating these same lies over and over.

          • Chimbwido Warvet says:

            A well informed man/woman can only be the correct one in a bunch of ill educated rhodies who spent most of their time on stolen farms growing tobacco, bean, nuts and very little bananas. That is why Chimbwido Warvet does not waste his precious time looking at who says what to him. He has his convictions, values and way of looking at burning issues objectively and nobody can take that from him. It is a fact that you should get get used to, my Rhodie friend.

    • Larry King says:

      John Robertson is a well known economist he mainly talks about the economy that is his forte. As for you and I have said this many times you are just a Zanu PF praise singer and a CIO informant. We do not even know who the f@ck you are besides giving us all the indications you are a CIO agent paid to prop Zanu PF. Even your claim to be a war hero is dubious and hard to believe. All we know is that you call yourself a war vet which Zimbabweans do not buy. Assuming even if your claim is true I mean a war vet what makes you believe you know everything and can authoritatively reject John Robertson’s views on this subject which is economics related.

      Each time you come out in defense of your crooked friends in Zanu PF and also when you hero worship the biggest thug in Zimbabwe a man called Robert Mugabe you sound like a broken gramophone. You know given the nature of your job in the CIO any moron can become an informer just pay him and he will suck up. This is what you do for a living is suck deep in the behinds of those that you curry favor with.

      • Chimbwido Warvet says:

        Unfortunately, the well known economist, John Robertson, is known by us for wrong reasons. He has never been supportive of the efforts being made by this government. An economist who does not understand the current world economic crisis is good as dead. All countries are coming with all sorts of ideas to grow their economies but a Rhodes trained economist whose economic ideas are now outdated attempts to kill such ideas. No economist of the world has come out with any workable idea to address this burning economic crisis. You do not have the foggiest idea and that explains why you are bent at attacking me without offering your views on the subject under review. I have a job to do inform those want to read my ideas and I shall not allow any Rhodie to divert my attention from what I believe is the truth. You can now kiss my a…hole and enjoy the day.

        • Common Sense says:

          “An economist who does not understand the current world economic crisis is good as dead….” … that would be you then !

        • Larry King says:

          At least John Robertson is a trained economist which you acknowledge and what are you? A trigger happy moron who lived in the bush for too long and after the war or so called war you landed yourself in the CIO where you have become even more stupid.

          • Chimbwido Warvet says:

            This is not about a Rhodes scholar whose economic views and ideas are outdated, old fashioned, irrelevant to address the economic challenges of the Zimbabwe in light of the contemporary global economic crisis. It is not about political grandstanding but about coming out with useful ideas, if you have any, for Zimbabwe to get out of the economic quagmire it finds itself, but not of its making but by crooks at Wall Street who have tampered with the reserve currency of the world – the US dollar to be specific. To help grow their economies, many countries are coming up with all sorts of measures to resolve economic problems that have affected the entire world and none of the renowned world economists have answers to resolve the global economic crisis. Can John Robertson bring surprises to the world that is already in economic recession? Is this ‘deflecting ZANU PF criticism or being a CIO operative?’. You are unbelievable Larry King. Just surprise us and come out with workable solutions to Zimbabwe economic problems. The ball is now in your court, my rhodie friend, who seemingly, is an intellectual maggot.

          • Larry King says:

            You are yet again showing how stupid you are on a a subject that you and Chinamasa who is now Finance Minister are ignorant of. At least John Robertson is a well known economist with a reputation. What are you and for that matter Chinamasa compared to John Robertson mere idiots. Its you that is trying to make a political grandstanding on someone who has knowledge as opposed to your naivete.

            For an idiot like you to say that economic theory learned by any scholar of economics which you are not becomes outdated and irrelevant is bizarre. Only morons like you can say such rubbish. We do not have any worthy economist in Zanu PF all we have are a bunch of cowboys and crooks, no wonder Zimbabwe has been on the downhill since 1980. CIO informers like yourself want to believe or claim to be experts.When in fact all you display on such forums is sheer madness and stupidity.

            John Robertson is not a magician nor is he in Zanu PF to advise Mugabe and his fellow idiots. He is a private citizen enjoying his twilight years in retirement. You are the one who should tell us who you have confidence in your crooked party Zanu PF to move Zimbabwe away from the hole it has been put in by Messrs Mugabe and his alibabas. As for you what more can I say you have exhibited enough of your stupidity and strengthened not only my belief but that of many that you are one big fool in the pay of the CIO.

          • Chimbwido Warvet says:

            All I can hear is the barking of a tiny puppy that is hungry an: craving for milk. As you know, a hungry puppy can be quite dangerous. It behaves like a wounded animal that can also be very dangerous especially if is is also hungry. I am aware, the majority of rhodies have been behaving like wounded animals or hungry puppies since year 2000 when you were dispossessed of what you considered were your farms. It did not occur to you that you were occupying those farms illegally as none of you and ancestors paid the rightful owners of land you just drove away to create room for you, ancestors and associates. Well, you can behave like a wounded animal for as much as you like, as Chimbwido Warvet can not help you. He is also a victim, as his only farm was taken by this government to resettle the landless people of this country. I was bitter to begin with but I have moved on as it is not the end of the world. For you, the war against this government for taking back the once stolen farms is still being fought in various shapes of battle fronts, be it economic warfare against Zimbabwe, accusations of people whose views are at odds with theirs as CIO operatives, ZANU PF sympathisers and not sympathising with your cause to derail the legitimate government economic and political policies you do not want

          • Larry King says:

            I lived in Harare for most of my life, in downtown Harare, primarily because the whites would not allow us to live or buy properties anywhere except within a very small designated area. I never had any passion for farming so what you are saying above is garbage, it is totally false and has no basis for any truth.

            In one gigantic leap you jumped the topic, about John Robertson to farms because you failed to make any sense of the former. Even on farms you sound stupid and foolish. You have no defense for Zanu PF’s stealing of farms from whites who were real farmers who fed the nation and had a lot more to export. The illegal dishing out of farms to Zanu PF recipients has shown beyond any doubt their inability to farm let alone to even grow tomatoes.

            Zanu PF does not have any legitimacy, it has crooked every election since 1980 which was the last fair elections held under an auspicious authority. What economic policy of Zanu PF would anyone who may even know as little about economics want to derail? Zanu PF is a party full of clowns, thugs and CIO operatives like yourself. It has had no vision on where Zimbabwe should proceed and to build a better future for Zimbabweans. All your alibabas have done in 33 years and are still doing so with no let up is to build empires for themselves. They do so by breaking the backs of ordinary millions of black Zimbabweans. And you like a fool feels proud of all this humbug. Are you not a heartless, selfish moron?

          • Chimbwido Warvet says:

            Vanhuweee batai kuti iyi kuti irege kuruma kana kudya vanhu. Yavenoukasha hwekutodya kana nyika yose nenyaya dzeminda yakabiwa akazotorwa nevaridzi veminda. Zvino Chimbwido Warvet angabatsire papi apa iyeainewo munda wakatorwa ukapiwa vanhu kuti vabatsirike? Ndakonewa ndavakubuda munyaya iyi vanhuweee.

          • Larry King says:

            Oh so now that you have finally decided you have no more crap to write or have any creditability to defend your false agendas you have suddenly switched to a language which I do not understand.

          • Chimbwido Warvet says:

            Uriduzvi blaz. Wakagara munyika yangu makore akawanda asi haugone kutaura mutauro weruzhinji rwevanhu. Ndizvo zvinoratidza udofo nerusarura. Kana ini ndichinyra nekutaura chirudzi chenjuzu kana kuti mafzimudzangara, iwe chinokutadzisa kutaura chirudzi chevanhu chaivo chiii?

            If you can not understand the language of the majority of the Zimbabwean people whose land and houses you, ancestors and associates occupied illegally for centuries, it explains just how stupid, foolish and out of touch you were with my people you governed against their will. You therefore did not know of the hatred and ill-feelings my people held against your uncivilised governance. That you can not understand my language is your problem. How come, I read and write better English than you when it is supposed to be your mother’s tongue?

          • Larry King says:

            I am Zimbabwean as much as you are and if I do not speak a certain language it does not make me less or more Zimbabwean. You are actually talking from your b@lls. Good governance has to do with honesty and integrity, the Smith regime and his predecessors as much as racist they were they had these good qualities. You and your allies in Zanu PF have become a party full of thieves

            The Rhodesian Front gave us civilized and good governance, we were better off then compared to where we are today. Zanu PF cheats its very own blacks do you call this good governance, no they are a bunch of savages who devour their own people.

            Bravo for telling us what a fool you are, for lying to us that you can speak and write better English and then you consistently reject anything that has to do with certain western values like their languages. For a CIO agent English is a requirement of your job, so if you profess to be more eloquent in this “imperial” language good for you. It does not mean you are better person after all all you will remain an idiot. English has never been my “mother’s tongue” its only one of the three languages that I am conversant with none of which feature in your “mother’s tongue”

          • Chimbwido Warvet says:

            I was reading the gospel of Saint Luke on this beautiful Sunday but I read this interesting piece, I accidentally dropped the Bible and started to laugh uncontrollably. I am now convinced you are a troubled woman. Any pet us agree to disagree.

    • Ned says:

      Why does Zimbabwe have no currency of its own? Its John Robertson?

  2. Matthys Kroon says:

    I think its visionary, we should have the same thing in South Africa!

  3. Hungwe says:

    Rubbish! After Rubbish! After Rubbish.

    • Chimbwido Warvet says:

      Ndikosaka uri mbutu inonhuwira vamwe kana ikasagezwa zvakanaka. Makarekare angu ndaitobvunza musikana kuti zvinoyakagezwa nesipo yejerimani here ndisati ndatanga basa nekusada kunhuwhirwa.

  4. dumbu says:

    Our country is now a playing field of these people who are coming for our diamonds. Sure Mugabe neimbwa dzake vaputsa nyika takatarisa. Kuwondonga nyika uku pachokwadi,

    • Chimbwido Warvet says:

      Nhai sekuru zvamati kuwondonga nyika uku, kodai zvaitwa sei sekuru? Musaite sevana gundamusaira vanongopupurutswa semhepo vanotizvataurwa nangana ndizvochaizvo nguva dzose. Tinoda kunzwa mazano nekuti Zimbabwe handiyoga inematambudziko.
      Nyika dzose pasirino dziripanguva yakaoma zvikuru sekuru. Musanyeperwe sekuru pasi papinduka, kurarama kwavakuda njere sekuru. Titaurirei kuti zvino toita sei kuti tirarame?

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