Online Reporter
Martin Kadzere
The Confederation of Zimbabwe Industries (CZI) has urged the Reserve Bank of Zimbabwe (RBZ) to formalise its proclamations on de-dollarisation through clear legal instruments.
The business lobby says this move is critical in instilling business confidence and attracting investment.
In its submissions to the Ministry of Industry and Commerce during an engagement meeting with Business Member Organisations this week, the CZI emphasised that verbal commitments, while appreciated, are not enough to instill the certainty required by businesses.
It specified three key areas that need legal protection: the preservation of United States dollar balances, the protection of US dollar-denominated obligations and guarantees for monetary policy stability.
The concerns arise from the 2019 when the RBZ, through Statutory Instrument 142 of 2019, abolished the multi-currency system and designated the RTGS dollar as the sole legal tender.
This effectively converted existing US dollar balances to the new local currency at a 1:1 rate.
“Clear legal instruments will provide certainty and build trust with industry and investors,” says the CZI.
The Government plans to have the multi-currency system in place until 2030 by which time it envisages having built adequate gold and foreign currency reserves to back the local currency.
The RBZ has indicated its plan to roll out a formal de-dollarisation roadmap, which will be part of the National Development Strategy 2 (NDS2) to replace NDS1.
