So the Zim dollar is back, sort of… There is no physical currency called the Zim dollar yet but effective today, what we have been calling RTGS dollars and bond notes are being referred to as Zimbabwean dollars.
The Minister of Finance, Mthuli Ncube has issued a statutory instrument that defines what the Zim dollar is. The same instrument sets aside the multicurrency system that has been in place since 2009. The ‘new Zim dollar is now the only accepted legal tender within Zimbabwe except for specified exceptions.
Here is part of the instrument:
N.B Did you know you can easily keep up with the rapidly changing exchange rates on WhatsApp? You just send the word Rate to the Techzim Market number: 0719696102. Or use this shortcut link: http://wa.me/263719696102?text=Rate
90 comments
This is GOOD NEWS. The US dollar was a severe restraint on the Zimbabwean economy.
The ONLY advantage of the dollar in Zimbabwe is price stability. However, since dollarizing, Zimbabwean industry has HALVED its production. And since dollarizing, the government’s foreign currency reserves have fallen drastically.
It is imperative that Zimbabwe adopts its own currency once more. Follow this thought process:
1. To develop, Zimbabwe needs to invest massively in useful infrastructure projects.
2. However, due to crippling shortages in foreign currency, it can’t finance these projects.
3. To raise foreign currency stocks, Zimbabwe must stop importing so much (which depletes forex reserves) and become a net exporter.
4. With the dollar, Zimbabwe’s exports are uncompetitive.
5. With its own currency, Zimbabwe will be able to transition to an exporting economy, raise foreign currency stocks, invest in its infrastructure, and climb out of the deep hole in which it has stagnated for the last two decades.
The only way for Zimbabwe to develop is to transition to an exporting economy using its own currency. Dollarization offers short-term stability, but kills productivity in the long run, and accrues government debt.
Hopefully it’s now clear that the return of the Zim Dollar leads to development.
As long as its not recognised in zambia south Africa or dubai as legal tender its still a bond note
Do not distort history. A third, to half, of the industries closed down pre-dollarisation because it was no longer viable to operate. Companies could neither repair/service their machinery nor pay their staff a sufficient wages to retain them (as they left for greener pastures). The few industries that are there now were saved by dollarisation, otherwise there would be nothing left.
1. You can still invest in infrastructure in US dollars, instead the only investments made were massive mansions and flashy cars. We have 2019 models of top of the range cars, but 1980’s equipment.
2. Where is the investment that happened before foreign currency shortages? Zero! 22 billion US dollars amassed in local and international debt has nothing to show for on the ground.
3. Zimbabwe imports because industry is dead, you cannot just declare we must stop importing. Point at 5 things in your household that are entirely locally produced. Even grain in your staple food is imported.
4. The competitiveness of production is based on pricing, not currency. Otherwise countries with strong currencies wouldn’t be able to export. Our local products are priced high, because management get massive perks including brand new luxury vehicles every 2-5 years, whilst the workers on the ground don’t even get a living wage. Equipment is archaic, from the 90’s or 80’s, whilst the head-office parking lot sparkles with the latest executive vehicles.
5. How are those that are exporting at the moment doing it, and making a profit at that?
A local currency in NOT the ONLY way. It is a mix of policies, preparation, execution and follow through.
That’s a very interesting analysis . And it’s actually quite true. Usd was not working . However Zim is not a normal economy at the moment and this moves leaves issues to be addressed. Such as our money has basically been stolen as we deposited usd. Which became bond and is now worth much less in rtgs.
2.Reducing imports and increasing exports is indeed a problem any finance minister must solve. But it is simply not as easy as it sounds because Government wants to control exports for example an individual cannot just export his maize to Zambia, he has to sell it to gmb in zim dollar and then gmb export it in usd .
3. What is backing our Zim dollar? Mineral reserves or USD?
4. Economics law of supply tells us that producers will not want to produce much due to low profits thus shortages will be born if producers feel the zim dollar has no value and if They are expecting it to crash 5. The government will somehow need to regulate and maintain a Zim dollar economy. This is again much more difficult to actually do.
It’s an interesting move, but if the government cannot get the people to co operate and get a control of the black market . They will face more problems than ever before.
There is a reason why the Zimbabwe dollar was abandoned in the first place. I see no indication that those issues have been addressed. Just changing a name will not solve the underlying problems the economy faces nor will it being back the confidence that is needed for a currency to be effective.
The Zimbabwean people have been lied to so many times. We were told the Bond coins were to address shortages of change when transacting and that the Bond Notes were nothing more than an export incentive and were thus pegged at 1:1 to the USD. The RTGS were adopted apparently to ease liquidity and all these suddenly became a currency called the RTGS dollar. A clearly reactive stance with little foresight.
Zimbabwe like any other economy will still need real FDI to boost forex needed to kick start production. To suggest that a mere return to the zim dollar sees production retain or infrastructure suddenly being erected is wishful thinking.
There are many reforms that need to be undertaken that are far more important than just announcing the return of the Zim dollar.
It is ignorant and dumb to believe that just a mere return to the Zim dollar leads to development, that is propaganda and not economics.
I think we are running away from the fact of addressing macro-economic fundamentals first. The country has to improve on its national output and employ resources.
i agree
Is this Legit ??
this is absolute rubbish. we should start holding these certain individuals personally accountable for this rubbish they continue to tell us.
It will not work, it won’t work , Simple
HA HA You smoking some good weed there buddy
AND THE SHORTAGES BEGIN
There are shortages now.. what would the difference be?
So duty on vehicles at border we now paying in RTGS…?
Hell no! According to Section three, the re-introduction of the Zim Dollar doesn’t affect payment of custom and excise duty in the designated foreign currency. You will pay in USD. Simole!
What about salaries which were paid in USD
No, that remains in US$.
Good going Cde minister, the writting is now on the wall, now let drama begin!!!
Great move Cdes.. we are on our path to a glorious Zim, lets focus on rogue cardresses and deal with them too. As we continue to shine the light. New Dawn !!
Rubbish all this
is this even verified?? you guys could be spreading fake news again!
I’v checked the SI on the RBZ website and there is nothing which is mentioning this…its just a hoax
WELL
They want our hard USD these wolfves
They want our hard USD these wolfves
It will not work;simple
Nothing – but nothing – would suggest that this is fake news Aubrey. The fact that it is not on RBZ website is simply because they have not put it there yet. If that Statutory Instrument is fake news it was forged by someone with great care and knowledge of the the law.
This is Zimbabwe hey.
It is very much true my dear. In as much as we wld not like it to be its true
no you will not work. it will work . simple
God bless🙄
Back to trillions
how funny. Ivo they are getting paid in USD and they are transacting in USD but they want the masses to use Zimbabwe Dollar/RTGS/Bond/Whatever-the-currency-is. This is uncalled for.
I am not a business intelect by any bit but please help me understand how foreign investment will be channeled after this? You mean they need to convert their usd for the useless currency to opearate? Neither to claim to have good manners but it is part of social maturity for government to give public notice before actioning. Zimbabwe is not your kid where you just wakeup and dictate what suites you when you are taking a piss when you geel like. Respect people. We may stop the street but not knees. Do not cost your soul over political things. One all of you will answer. Be warned. If you have no development goals in office take a vacation and go do fishing by Kariba, no one will bother you. God bless Zimbabwe!
naked truth
ngamanga lawa…nikisi…. the minister couldn’t have issued such an instrument exclusively to this publication…had he issued such a thing,the media would be awash by now
God is the answer to all these mysteries
Mostly going to request all domestic FCA Nostro holders to liquidate to local currency.
adoption of rand perhaps would have worked.
Zvine nharo!
Doubt if change of that currency,RTGS or so called zim dollar will result in changes to the state of the economy….we tired now!!!!!!!
changind a patient clothes wont help us ,lets get to the core issues aand solve those ….all these issues of curreency they are just a result of something.
Vakuru venyika ityai mwari imi
I think its a better idea if we all work together withour currency things wil work for the better.look what happened to the Zambian kwacha it was nothing but now zvakutivafambira
kubirwa nokuba
good decision coz black market rates are the main cause of hyper iflation
You got a point
Good will come off the shelves.
hapachisina solution apa ko maitadzanei kufunga zvamazofunga izvi kubva mazuva aGushungo.mukutambira mari dzemahara Minister vefinance.hapana zvinozikanwa apa.ma
This is bs
Let them do what ever they want but keep the USD because it’s the best and making it illegal makes it even more attractive to the public
The system itself has always been buggy. What they say/do/implement is not what they wish to, it’s a reactive instance to the situation at hand. With such an approach, we opt our outcomes based on probabilities. If you truly understand, you know that we sure are in a very bad state. Not to justify or object with the move, I hope this time we see good results, hopefully.
i think we have started with the secondary issue. production first, then we can talk about new currency. We lacked the prowess for prioritisation.
next coup soon removing corrupt individuals around Ed….thats the whole finance ministry and RBZ….The reason south africa is successfulnis because the Reserve Bank is independent from any political party and cannot be swayed or bribed or forced to do anything…unlike RBZ…most corrupt institution who continues to destroy our economy without restraint…how does mangundya who is a board member of afriexim bank make loans from same institution its called conflict of intrest in a normal country…please Mr President save us the waiste of time and needless loss of innocent lives from the immenent protests…the voice of the people…
per se…reduce the prices of goods for the zim dollar to have value.its the same old thing,Chaora chinhu uchi!
As an ex UCT Economics graduate lives in Zim, when this Mthuli and Eddie Cross (advisor to FM Mthuli)so called economist & professor wanted to devalue the currency last year, i said to many people around me these guys will destroy Zim economy, because Zimbabwe is a big importing country(fuel, electricity, wheat, many raw material and finished products ), devalue the currency would be suicidal, as everything will become expensive(hyperinflation) and all exporters incl. gold producers will not want ur money anymore, what about ppl salary, gov tax and rates collection would all become worthless, but these guys wanted the currency all the way down. Eddie’s famous words were”our currency is the strongest in the region”after the rate fell to 6:1, and last year before Mthuli speech at UK Chatham House the rate fell to 3:1, his famous sentence at the speech was “the black market was doing the devaluation job for me”, the rate straight fell to 5:1 after his speech at Chatham House (both available on Youtube). The rates fell from 1.5 Oct last year to current 12, now these2 (biggest currency speculators) does not know what to do, as we have no fuel, no zesa, 18hr in darkness, thanks eddie& mthuli. You are legends in destroying the economy in such short time
So will the prices in shops and markets decrease since we are now using this new zim dollar
Ambush Economics
😂😂😂😂😂😂zvakuzonakidza manje
So its a matter of renaming RTGS to ZWD. This sounds like a big joke. The same issues that led them into denouncing the ZWD in 2008 are still prevalent. So, everyone must brace for the 2006 – 2009 inflation impact. That’s it…
Zvakuzobhowa manje Rtgs hatina zvariri kubatsira apa ndopomobvisa us dollar dai matobvisa Rtgs muchisiya us
It’s a time ticking bomb😃…and I guess this is an experiment
Glory to God. As I myself together with others of faith, will continue interceding for our leaders for the Spirit of God inspire them continually so that the strategies they apply are lasting and staying. One thing for sure I have known is that with God nothing is impossible.
The hand of the Lord is mighty upon our national leaders and we approaching the desired point by the power of the Holy Ghost.
Zimbabwe shall never be the same again.
My prayer again is that they that comment repent and being speak good things and come to know that our leaders should not be left alone, but we the led the ones join hands together with them in nation building.
I am glad because even if everyone is against this intercession God can still hear and answer a prayer of one man who decides praying, and I am one of them that are standing of a gap.
Fellow Zimbabwe,
Show love to your country and nation building by interceding for the gvt. God approves it.
Are you serious
To pray for the nation is a good move but with people hve devilish mind ummmmm
This is unacceptable at all. All those in power we know you will be using the foreign currencies as what you were doing before & you want us to keep using those toilet papers called Bond Notes. When we voted you in power we were expecting you to take care for us but up to now the only tangible thing you did is to reject us.
You will never realise how good your job is until you’re fired.
ED imhata yowerere!
ED naMtuli imhata yowerere!
So does this apply to the government departments eg zim residents with foreign passport (born here mind you) can now pay in Bond/RTG or is it a double standards?
The citizens were benefiting when they rate those who works in South Africa. Now yave yowerere kwamuri
kwatakabva kure kwatirikuenda ndokwatakabva sure….welcome back 2008
kwatakabva kure kwatirikuenda ndokwatakabva sure….welcome back 2008
yah ndomhata idzi manjeh this will not work at all
yah ndomhata idzi manjeh this will not work at all
Be still and know that God will never fail Zimbabwe God loves this Country and its people
God is healing this nation, He has many ways to make things right just pray and see
We’ve employed you as management to run our business,now you’re pointing guns at your employers. God help us. Another 40years of destruction and open theft.
Chaora chinhu ichi it will not work simburi
Yes it will work no it will not work if you think that it will not work yes it will work but it will not work you will see it will work
Simple.
Yes it will work no it will not work if you think that it will not work yes it will work but it will not work you will see it will work
zim dollar will work cooking oil from 25 bond back to 3bond…#it will work
Kkkkk we are patuently waiting for that day that will happen
if a contract already in US$ isit still or has gov changed contracts
Ndakuzokumamisai manje ma ZANU pfe
Will this change current rates or will continue as they’re
The return of legendary currency Zim dollar ayeye
The return of legendary currency Zim dollar ayeye
Does Pride Come Before the Fall?
God is able to humble those who walk in pride.
Now I, Nebuchadnezzar, praise and extol and honor the King of heaven, for all his works are right and his ways are just; and those who walk in pride he is able to humble.
Daniel 4:37
A historian wrote, “Power tends to corrupt, and absolute power corrupts absolutely.” One of the Bible’s best examples is found in the book of Daniel. Nebuchadnezzar, the ruler of a worldwide empire, had a dream that foretold God’s judgment upon him. He nevertheless ignored the dream and did exactly what he was warned not to do, taking credit for the empire and everything achieved by it. God’s judgment fell, just as promised. How could a situation like this work out to his benefit?
The dream that warned the king
With all he had going for him, King Nebuchadnezzar was stubborn and prideful. In the second chapter of the book of Daniel, he dreamed about a great statue symbolizing his kingdom and other future empires. Only Daniel could correctly interpret the dream, so he was promoted. The king offered praise to Daniel’s God: “‘Truly, your God is God of gods and Lord of kings, and a revealer of mysteries, for you have been able to reveal this mystery.’ Then the king gave Daniel high honors and many great gifts, and made him ruler over the whole province of Babylon…” (Daniel 2:47–48).
In the next chapter, the king built a giant statue and it was suspiciously similar to the dream’s statue. Whoever refused to worship the statue when certain music played would be burned alive in a furnace (Daniel 3:4-6). However, when God’s miracle delivered some faithful Hebrews from Nebuchadnezzar’s punishment, the king once again made a law: “Any people, nation, or language that speaks anything against the God of Shadrach, Meshach, and Abednego shall be torn limb from limb, and their houses laid in ruins, for there is no other god who is able to rescue in this way” (Daniel 3:29).
Chapter four starts with some similarities: God gives the king another dream that only Daniel can interpret. This time, though, it’s all about Nebuchadnezzar himself. Daniel tells him it means for seven years he would lose his mind and his kingdom, acting like an animal and eating grass, until he genuinley recognized God’s rule (Daniel 4:25-27).
The forgetful, prideful outburst that cost him everything
A year passed and the king had obviously forgotten all of this. He said, “Is not this great Babylon, which I have built by my mighty power as a royal residence and for the glory of my majesty?” (Daniel 4:30). God’s judgment took place exactly as predicted. He lost his sanity and became unable to care for himself or feed himself.
The surprise blessing that made it all around the empire
After the seven-year-long judgment was complete, the king said, “…my reason returned to me… I …praised and honored him who lives forever …his kingdom endures from generation to generation; all the inhabitants of the earth are accounted as nothing, and he does according to his will …none can stay his hand or say to him, ‘What have you done?’” (Daniel 4:34-35). What an amazing confession!
What’s different about this chapter of Daniel is that it is written to “…all peoples, nations, and languages, that dwell in all the earth…” (Daniel 4:1). It’s written in a different language than the rest of the book as well. Most shockingly, it is written in the first person. This chapter is Nebuchadnezzar’s proclamation. It is an official state document translated into multiple languages and sent to the world, confessing his sin against God and the “signs and wonders the Most High has done for me” (Daniel 4:2). It is the king’s personal testimony explaining how he repented and came to know God as the one, true and living God.
The lesser-known part of my initial quote about the corrupting nature of power is, “Great men are almost always bad men.” What an ironic phrase! Why hasn’t that part of the quote become better known? Maybe because it shows us our habit of elevating people for the wrong things. Read through the Bible and identify important births and the stories of leaders. From the time Jesus was predicted, as the “offspring of woman” in Genesis 3:15, to Jesus’ tragic words about His people’s readiness to accept a future substitute “Messiah” instead of Him, who would “come in his own name” (John 5:43; Daniel 11:36), people have looked to some of the most flawed people as heroes, saviors and leaders, and have always been disappointed.
Moses, the great leader, was left behind because of one fit of anger. Strongman Samson was shamed and blinded by his lust for a forbidden woman. King David stole a faithful servant’s wife and allowed the man to be killed in battle. Why weren’t these stories left out of the Bible? Because God will not put up with our tendency to idolize people.
Against the bleak backdrop of all these disappointments—the outright villains and even the heroes of the Bible—Jesus shines like a diamond! Take it from a former undisputed king of a worldwide empire: “all His works are right and His ways are just; and those who walk in pride He is able to humble” (Daniel 4:37).
Lets wait and see what these guys are planning. It may e helpful. All we need is to have a beautiful Zimbabwe once again