Reserve Bank of Zimbabwe Governor Dr John Mangudya (pictured)said that those demanding the use of the South African Rand are indirectly asking for the return of Zimbabwe dollar as this can only be done when a country pegs its own currency against the Rand.
He said all countries doing this such as Namibia and Swaziland all had their own local currencies.
Several Zimbabweans including top bankers and Tourism Minister Walter Mzembi have called for the adoption of the Rand instead of using the bond notes.
Mangudya dismissed the possibility saying ” Do you think you just wake up one day and then say we are now using the Rand? There are procedures and legal requirements that need to be fulfilled before adopting the rand”
” All the other countries such as Swaziland and Namibia which use the Rand have their own currencies against which the Rand is pegged. Those calling for the adoption of the Rand are calling for the return of the Zimbabwe dollar” added Mangudya.
Zimbabweans have bad memories about the Zimbabwe Dollar after it depreciated and many lost their savings and investments.
Speaking at the same event Economist Ashok Chakravatti said that he agreed that the United States Dollar is attractive and easier to whisk out of the country but instead of introducing the bond note he said it was wiser to adopt the Rand instead.
Mangudya said that all the modalities to introduce the bond notes are ready and a programme to educate the nation about the notes would commence on 31 October 2016.
more to follow