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| Africa Subsaharan | |
| Mugabe says Zim may revive its own currency | |
| 2009-06-27 | |
[Mail and Globe] President Robert Mugabe says Zimbabwe may revive the use of its own currency because the United States dollar introduced to tame hyperinflation was unavailable to a majority of people in the countryside. His comments contradict a pledge made to investors this week by Economic Planning Minister Elton Mangoma to stick with the dollar, and raise questions about who is in charge of policy in Harare's fractious power-sharing administration.
In January, Harare lifted a ban on the use of foreign currency to stem hyperinflation of more than 230-million percent that had rendered the Zimbabwe dollar almost worthless. The decision led to falling prices and a flood of goods on to previously barren supermarket shelves, but Mugabe said it had caused untold suffering because rural people had no access to the dollars and South African rands circulating in towns. At the time of currency liberalisation, economists predicted it could make life tougher for ordinary Zimbabweans, most of whom would continue to be paid in local currency but be forced to pay for goods and services in foreign currency. Mugabe's and Mangoma's contradictory comments suggest the unity administration formed in February to try end a devastating political and economic crisis was still at loggerheads over very basic policies. "It creates the impression of a divided government which has not worked out some positions on very basic issues," leading economic consultant John Robertson said. "Potential donors will be worried about this." | |
| Posted by:Fred |