Retailers make a case for multi-currency continuation Dr Denford Mutashu

Ivan Zhakata, Herald Correspondent

RETAILERS have pleaded with the Reserve Bank of Zimbabwe (RBZ) that the multi-currency regime remains as a policy until 2030.

In a letter dated September 30, 2024, addressed to the RBZ Governor Dr John Mushayavanhu, Confederation of Zimbabwe Retailers (CZR) president Dr Denford Mutashu commended the Monetary Policy Committee (MPC) for its recent initiatives that aim to introduce more flexibility in monetary policy, promoting stability in the market.

Dr Mutashu said they recognised the delicate balance that RBZ must maintain in addressing the multifaceted challenges facing the economy.

“While some quarters are calling for dollarisation, others are for complete de-dollarisation, it is our submission that the multi-currency regime remains as is policy until 2030,” he said.

“Dollarisation can only be possible if the economy can generate sufficient foreign currency to back demand. As the CZR, we strongly believe that any attempts to fully dollarise at this stage could have catastrophic consequences for both businesses and the broader economy.

“A hasty transition will amplify current economic challenges rather than alleviate them. This letter serves as a submission of our insights and recommendations to the RBZ, urging for a rational and gradual approach to de-dollarisation.”

Dr Mutashu has also applauded the efforts of the MPC in promoting greater flexibility within the economy.

“We strongly urge the RBZ and the Government to adopt a gradual approach to de-dollarisation,” he said.

“Immediate and complete de-dollarisation would pose significant risks to businesses, consumers and the broader economy, potentially reversing the hard-fought gains made in recent years. We are confident that with the right approach, Zimbabwe can achieve monetary sovereignty that supports long-term economic growth and stability.

“The CZR remains committed to working with the RBZ and the Government in developing strategies that benefit the retail sector and the economy as a whole. We look forward to further discussions on this matter and are ready to provide any additional information or support required.”

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