Mugabe says dollarisation no solution to Zim economic woes

HARARE – Zimbabwe’s President Robert Mugabe on Friday said plans to revert to the local currency were underway as multiple currencies introduced earlier this year were not helping the plight of the people.

‘Yes, prices may have gone down but the people should have the money,’ the state-controlled Herald newspaper quoted Mugabe as saying.’If they don’t have the money, how will they buy the goods? We can’t run a country like that. We are considering changing that and reverting to our own currency.’The government allowed shops and service providers to trade in foreign currency, mainly the US dollar and the South African rand, to help businesses acquire stocks from neighbouring countries.Before the introduction of other currencies, most shops resembled empty warehouses as businesses failed to restock because of constantly changing prices. Faced with a worsening economic crisis and political tensions, Zimbabwe’s three main political rivals formed a power-sharing agreement aimed at reviving the economy and easing tensions. -Nampa-AFP