Finance Minister, Professor Mthuli Ncube, says bond notes will have to be demonetised as the economy is self dollarising. “On the currency...
Finance Minister, Professor Mthuli Ncube, says bond notes will have to be demonetised as the economy is self dollarising.“On the currency front, I think the market is doing all the work for me, I don’t have to announce…it’s very clear that the economy is in essence self-dollarising.
“If you look at the RTGS exchange rate and bond note exchange rate, the market has said these are not at par and I am not about to argue with the market. RTGS balances are sitting at about $6 billion, the value is going down.
“The market is doing all the valuations for us, and of course, at some point we will have to see how to handle that. Inflation is high now because foreign currency is available on the parallel market. It’s clear that at some point bond notes will have to be demonetised.”
He was responding to questions during a dialogue at Chatham House in London on Monday.
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