Printer Friendly

SAfrica's Motlanthe says Zimbabwe could adopt rand

South African President Kgalema Motlanthe said Sunday that neighbouring Zimbabwe, crippled by a record rise in inflation, could adopt the South African rand as its standard currency.

"We have to help them so that the coalition government works," Motlanthe said in an interview with the SABC channel, referring to power-sharing between President Robert Mugabe and prime minister-designate Morgan Tsvangirai.

It "may be practical for them to enter into an arrangement with the reserve bank here and allow the rand to become the common currency," he added, without fleshing out his suggestion.

Motlanthe also currently serves as president of the Southern African Development Community, which is mediating the crisis.

Prices in Zimbabwe rose by 231 million per cent in July -- the last time official inflation figures were made public. However, analysts say inflation in Zimbabwe actually stands at several billion per cent.

The national currency, the Zimbabwean dollar, has been repeatedly devalued and restrictions on the use of foreign currencies including the US dollar, the euro and the rand have been lifted by Harare.

Zimbabwe is also struggling to fend off a deepening humanitarian crisis amid a cholera epidemic blamed on collapsed infrastructure and a desperate need of food aid, according to international agencies.

Motlanthe also urged the international community to help the new power-sharing government, due to be installed this week, after the African Union called for sanctions against Robert Mugabe and his aides to be lifted.

Copyright 2009 AFP Global Edition
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright (c) Mochila, Inc.

 Reader Opinion




Article Details
Printer friendly Cite/link Email Feedback
Publication:AFP Global Edition
Date:Feb 8, 2009
Previous Article:Football: Newboy Resino puts Atletico back on winning trail
Next Article:Nigerian oil unions delay strike against kidnappings

Related Articles
Hard currency crisis in Zim.
Why is the rand falling? (Finance).
Rand strikes back: damned if you do, damned if you don't. That is the story of the South African currency, the rand, which is confounding its...
Crisis is a way of life: Tom Nevin, writing from Johannesburg, says that reports of Zimbabwe's imminent collapse now appear to have been premature....
On the edge of history: for a few giddy hours Zimbabwe teetered on the edge of history. but, with the exhilaration of impending change sweeping the...
Beyond apartheid: South Africa's long journey: it's still a bright spot on a troubled continent. But South Africa is facing tough realities 14 years...
How big a hole has Mbeki left? Over a stunning few days when Thabo Mbeki shocked the world by standing down from the presidency, South Africa's...
Quiet man of the revolution.
The fall of Thabo Mbeki.
Now I understand.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters