Chikohora gives thumbs up to multi currency extension

Gweru (New Ziana)-President for the Zimbabwe Coalition for Peace and Development (ZCPD) has applauded
the government`s multi currency extension move.

Chikohora`s acknowledgement came after the announcement of an extension of using multicurrency in the Zimbabwean market by the government recently.

The economist-cum politician said the move brings confidence in the current market landscape and assures businesspeople of the achievement of their goals for the next seven years.

“The move certainly brings certainty in as far as the current market is concerned that for the next
seven years we will still have the multiple currency regime in place.

“I think it is useful because people were already very curious and taking positions seeing that
multi-currency was perceived to be ending in 2025, so this gives clarity and allows people to plan,” said Chikohora.

In terms of currency stability, Chikohora said that it will be determined by the type of monetary
policies that the government will put to monitor the Zimbabwean dollar access liquidity and control its volatility and supply.

“In terms of the relevance of the Zimbabwean dollar it will be diminished by this announcement and you will find that people will continue to prepare the US dollar and really we will have more of the same.

“In terms of issues to do with currency stability again it depends on what policies government puts in place regarding the Zimbabwean dollar in terms of interest rates, in terms of exchange rates so that weather or not they have policies that ensure stability of the Zimbabwean dollar that remains to be seen,” added Chikohora.

On the same note, Chikohora warned Reserve Bank of Zimbabwe to judiciously monitor the Zimbabwean dollar from losing value.

“You find that if they don t continue to manage it very judiciously, we will have further deterioration of the Zimbabwean dollar so that is the way I see it.

“It is likely to be more of the same if strong policies are maintained by monetary policy and the RBZ people.

“If they slacken, we are likely to see a loss of value of the Zimbabwean dollar going forward,”
Chikohora said.