Mnangagwa Announces Return to Local Currency Amid Election Rigging Controversy

In a significant development, President Emmerson Mnangagwa of Zimbabwe has declared that the country will soon return to using its local currency, the condemned bond note dollar, as the sole legal tender. This announcement comes at a time when a documentary video has emerged, featuring his Kenyan business partner, Kamlesh Pattni, revealing ongoing election rigging operations in Zimbabwe, mirroring tactics he used in Kenya in the 1990s.

Pattni’s alleged election rigging method involves siphoning central bank gold and money, which weakens the currency and subjects citizens to the local currency. This revelation has raised concerns about the country’s currency stability and political integrity.

The President’s statement was reported in a state media article, in which he emphasized the need for Zimbabwe to have its own currency, citing it as essential for sustainable economic growth and development. Currently, Zimbabwe operates under a multi-currency regime, allowing the use of foreign currencies such as the US dollar and South African Rand. This arrangement is guaranteed until December 2025 under Statutory Instrument (SI) 118A of 2022.

During the swearing-in ceremony for his second term, President Mnangagwa expressed his commitment to entrenching the use of the local currency. He stated that a single currency is essential for the nation’s growth, responding to concerns raised about the expiration of the multi-currency regime in 2025.

President Mnangagwa acknowledged the 2009 decision to adopt a basket of currencies, which saved the economy from a domestic currency collapse. However, he stressed the importance of having a single, national currency for sustainable growth.

While the local currency has faced challenges, including value depreciation and public preference for foreign currencies, the government has assured the market of continued usage and efforts to strengthen its value, ultimately supporting economic recovery.

Zimbabwe’s reliance on foreign currencies in its monetary system has been blamed for the volatility of the domestic unit. A broader use of local currency can enhance the nation’s economic autonomy and sovereignty, allowing for more control over monetary policy and economic interests.

During the recent Zimbabwe Economic Development Conference (ZEDCON), stakeholders urged the government to provide a clear currency reform roadmap, especially as the 2025 deadline for the multi-currency regime’s expiration approaches. This uncertainty in the financial sector has led to hesitation in extending long-term foreign currency loans.

The move back to the local currency is expected to be a significant step for Zimbabwe, albeit with potential challenges and uncertainties, as the nation seeks to regain control over its economic policies and strengthen its economic recovery.- state media