Pressing for South Africa Rand switch ...
But speaking at the public meeting on the performance of the economy organised by Media Centre, Biti, who now leads a faction in the MDCT, said as long as there is no production to back the US dollar, the revival of the economy will remain a dream.
He said the main reason why
"We can actually use firewood as a median of exchange, it can work," said the former finance minister.
"Money is just an infrastructure of facilitating the base which is production. The challenge is that this economy is collapsing because it is not okay.
"We are not producing; the capital account is not okay, the current account is in deficit these are the things that you need to fix. These are the structural things that you need to fix.
"But the debate on currency is relevant because the US dollar has become overvalued. We don't have an economy to sustain that. We don't have the current account to sustain that, which is the export and the imports."
The move ended the inflationary problems and stabilised the economy but current finance minister
Biti said the problem was that the US dollar was overvalued in
"What we need to do is to devalue the US dollar but you can't do that because you don't print it," he said.
"Now they are calls for the return of the Zim dollar and this will be disaster. We propose US$ should be devalued by bringing in the rand as the official currency and joining the
"However the tragedy is that these guys in Zanu PF cannot afford to meet the requirements of the central bank of
"We need dialogue of all stakeholders because these comrades have failed to carry this nation forward," he said.
Speaking at the same event, economist Takunda Mugaga said Zanu PF needed a rethink on its policies, adding the ruling party must move to address the problem of investor confidence.
"We have corruption which is just but too much, we have a bloated government that is too big for this economy; all this needs immediate attention," he said.
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