We’ll Fix Up Zim Dollar Value- Mthuli
29 May 2023
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By A Correspondent | The local currency will continue to be used, and deliberate measures are being done to raise its value in order to restore consumer purchasing power and support the economic recovery’s momentum, according to Finance Minister Mthuli Ncube.
The government has stated that it will not budge from its policy to mainstream the use of the local currency because it has had a favourable effect on the broader economy, despite the most recent wave of speculative parallel market-induced inflationary dynamics and lopsided preference for foreign currency transactions.

According to Professor Mthuli Ncube, extra steps are being made to safeguard and preserve the Zimbabwean currency by getting rid of economic saboteurs.

His remarks come at a time when the local currency has been quickly falling in value against the US dollar, causing considerable consumer outrage and leading to the exclusive demand for payment in foreign currency by many company owners and service providers.

Some retail businesses have set their exchange rates at the unbelievable amount of $1 US, or $5 500, which is far more than the official rate of $1 888.

In an effort to collect foreign currency, a number of businesses, including well-known fast-food restaurants, have unplugged their electronic payment systems.

The inflated rates have also been a result of illegal forex traders employing POS devices for transactions involving big sums of money.

The local currency has aided in increasing economic productivity and the resurgence of some industries, according to Finance and Economic Development Minister Professor Mthuli Ncube, who was speaking to journalists after his Saturday tour of retail establishments and interactions with the general public in Bulawayo.

 “The Zimbabwe dollar is our lawful currency, our domestic currency, it is here to stay. It is what has given all these companies the competitiveness. That is why we have 80 percent of the goods being locally produced. This was not the case when the US dollar was the only currency that was circulating,” said Prof Ncube.

“Now we have this currency which has led to a kind of boom in the domestic economy and improved competitiveness and this is all due to the presence of the Zimbabwean dollar. We need it, we need to preserve it and protect it as Government. If we stop using the local currency, it will lead to some companies closing down. Some companies were able to reopen and invest because we introduced the Zim dollar.”

He said the new measures are expected to slow down the skyrocketing prices.

“Surely we will be announcing measures which I cannot mention at the moment this coming week to ensure that we strengthen the domestic currency and reduce the negative impacts that are eroding value for our currency,” said Prof Ncube.

“On 24 May 2025, the FIU froze the bank accounts of four major distributors, namely Saxin Trading, Simrac Enterprises, Brainscope Investments and Munella Enterprises, that have been diverting basic commodities to the informal market while refusing to supply same to established retailers who pay for and sell goods in local currency,” reads the statement.

“The FIU noted that these errant distributors transact almost exclusively in foreign currency cash yet they do not bank the cash as required under the Bank Use Promotion Act. The entities are being penalised and will further be referred to the Zimbabwe Revenue Authority for suspected tax evasion.”

It said it has also increased surveillance operations, identifying and taking punitive action against traders engaged in exchange rate manipulation and all other illegal practices.

“Members of the public are urged to report any illegal business practices as described above, to the FIU WhatsApp hotline numbers: 0780 434 475 and 0719 207 310,” it said.- State Media