Maravi

(NEWZIMBABWE) Zim to import change: Biti

Zim to import change: Biti
by Staff Reporter
18/07/2010 00:00:00

FINANCE Minister Tendai Biti says there are plans to import lower denomination notes and coins to help ease the shortage of change in the country. “Under the current multi currency regime, the inadequacy of smaller denominations has posed a number of challenges in transactions.

“Treasury will, therefore, be facilitating in the last half of 2010 the importation of foreign smaller denominations and coins,” Biti said last weeks fiscal policy review without giving details.

Zimbabwe ditched its virtually worthless dollar in January last year replacing it with the US green-back as well as the South African Rand and the Botswana Pula.

But with the export sectors still trying to recover from a decade-long economic crisis and the hoped for windfalls from foreign donors not materialising the country has been hit by a liquidity crisis as well as the shortage of change.

Recent reports claimed some people had taken to washing dirty US$1 bills, worn-out from over-use to improve their appearance. Retailers have resorted to asking shoppers to take other goods in lieu of their change.

In some cases shoppers are given a ‘credit note’ instead of their change when buying goods. The credit note can be redeemed for more goods later but only in the same shop.

Meanwhile Biti also said the multiple currency regime would remain in place until 2012.

“The current multiple currency regime will prevail until 2012 … Thereafter, currency reforms will be guided by developments in macro-economic fundamentals.

“Meanwhile, Government is receiving and compiling various submissions on the appropriate currency regime, and will produce a “white paper” that will facilitate public debate at an opportune time,” he said.

Labels: CURRENCY, TENDAI BITI

posted by MrK @ 4:58 PM