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Makoni pushes for devaluation

    JOHANNESBURG

    Zimbabwe's Finance Minister Simba Makoni will in two weeks present to cabinet recommendations for a devaluation of the Zimbabwe dollar, the 'Zimbabwe Independent' said on Friday.

    The report said the attempt by Makoni to convince cabinet to sanction a devaluation of the local dollar against the US dollar would be the third by the minister in three months following foiled attempts vigorously resisted by President Robert Mugabe and his colleagues in June.

    It added that the reserve Bank governor Leonard Tsumba had submitted recommendations to Makoni for a devaluation after complaints by airline representatives and bankers following threats that the government wanted to impose strict sanctions on the foreign exchange market. The government has banned airlines from quoting their fares in parallel market rates which had soared to 350 Zimbabwe dollars against the US dollar compared to the official exchange rate of 55 Zimbabwe dollars to the US dollar. Mugabe’s cabinet supporters have in the past argued that a devaluation of the currency would be an act of economic sabotage.

    This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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