IMF Recommends Zimbabwe Consider Closer Monetary Ties With South Africa

  • Gibbs Dube
The IMF said Zimbabwe could reap significant economic benefits from a common currency zone, especially increased trade

An International Monetary Fund report says Zimbabwe should consider becoming a member of the Southern African monetary zone that now includes South Africa, Namibia, Lesotho and Swaziland should it decide to phase out the multi-hard currency regime it has had in place since abandoning the Zimbabwe dollar in early 2009.

The report said the South African rand would be the best currency for Zimbabwe either to adopt as its sole currency, or as an anchor currency to which a closely monitored Zimbabwe dollar would be pegged.

The IMF said Zimbabwe could reap significant economic benefits from a common currency zone, especially increased trade. If the country were to adopt the U.S. dollar, it could face problems such as shortages of coins, it said.

Economist Prosper Chitambara said joining a regional monetary zone is the best option for Zimbabwe as the Southern African Development Community is already proposing a common currency.

Commentator Bekithemba Mhlanga said Zimbabwe should forget about its own currency for the time being.