Chinese Yuan as Zimbabwe’s Currency: Govt Rebuts
23 January 2016
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The Reserve Bank of Zimbabwe has denied the introduction of the Chinese Yuan as the settlement currency in Zimbabwe in 2016.
RBZ BUILDINGThe RBZ through the state media said it wants to “set the record straight” on the use of the Yuan saying it is only part of the large pool of several other trading currencies while the United States dollar will remain the country’s settlement currency.
The development on the adoption of the Yuan as a trading currency comes after reports within the market that the country will adopt Yuan as a settlement currency.
The denial comes as the subject became common talk on media platforms with pro ZANU PF analysts defending the adoption as vital for economic progress and even President Robert Mugabe’s being vocal on it at the end of last year saying, “the acceptance of the yuan into the world currency basket should offer (a) new possibility for us as from next year.”
The Yuan had already been accepted as a trading currency a year before and this development was seen to signify it is now clearly becoming settlement currency.
The State Media in an apologetic reported arguing that “the International Monetary Fund (IMF) has also taken the Yuan as part of the special drawing rights.”
Briefing captains of industry, RBZ Governor Dr John Mangudya said the US dollar will remain the settlement currency while other currencies will be trading currencies.
Mangudya said there is need to pluck out leakages within the economy to ensure the coming of new money into the economy will not be abused by business executives.
The financial services sector has become stable though issues to do with high interest rates continue to affect borrowing by productive sectors of the economy.