Finance Minister Tendai Biti has indicated that the Zimbabwe dollar is no longer in use.
Presenting a revised 2009 Budget to Parliament, Biti said: “The death of the Zimbabwe dollar is a reality we have to live with. Since October 2008 our national currency has become moribund.”
“In this regard, I therefore announce the removal of all foreign currency surrender requirements,” Biti said, adding that all licensed foreign currency outlets will no longer be required to remit five percent of their proceeds to the Reserve Bank of Zimbabwe.
He said the removal of the forex 
surrender requirement was meant to promote business viability. The requirement was, he said, affecting most business while the move was also in light of the fact that the local currency was no longer in use. Zimbabwe is talking to the United States and European Union over the repeal of sanctions, according to an economic policy document, the first sign the new government may be gaining the confidence of Western powers.
But Washington rejected President Robert Mugabe’s call to ease sanctions on the impoverished African country, saying the government had “a long way to go” before this could happen.
The document released on Thursday by the unity government said political reforms demanded by Western donors were a crucial part of an emergency recovery plan to ease hyper-inflation and widespread shortages of food and fuel.
At the launch of the government’s Short-term Emergency Recovery Program, Mugabe called for international help for the plan and reiterated a call for sanctions to be lifted.
Washington said it needed to see clear signs of reform.
“We have not yet seen sufficient evidence from the government of Zimbabwe that they are firmly and irrevocably on a path to inclusive and effective governance as well as respect for human rights and the rule of law,” U.S. State Department spokesman Robert Wood told reporters. “That government has a long way to go before we will consider easing sanctions.”
The document forecast that inflation would fall to 10 per cent by the end of 2009 — from over 230 million per cent at last count — due to the use of multiple foreign currencies to replace the almost worthless Zimbabwe dollar.
The document said Zimbabwe has started talking to the U.S., EU, IMF and World Bank over the removal of sanctions.
“In this regard, discussions have already started with the EU, European Commission, World Bank, IMF, and the (African Development Bank) AfDB with the objective of removing the above sanctions and measures…,” the document said.
The government of Mugabe and Prime Minister Morgan Tsvangirai faces the daunting task of rebuilding Zimbabwe’s shattered economy after years of hyperinflation and decline.
While Western powers would prefer that Mugabe step down, they have indicated they can help the country recover as long as a democratic government is in place.
Western donors and foreign investors crucial to rebuilding Zimbabwe want political and economic reforms, such as reversing nationalization plans, before they will pour in cash.
“The key priority areas are … political and governance issues, namely the constitution and the constitution-making processes, the media and media reforms, legislation reforms intended at strengthening governance and accountability and (the) rule of law …,” said the document.
Much will depend on whether old foes Mugabe and Tsvangirai can work together and persuade skeptical Western countries that they can manage the recovery. “This is a welcome program but it would require the government to religiously stick to the key principles of respecting the rule of law, upholding the sanctity of property rights and democratic reforms,” said John Robertson, a Harare economic consultant, who met an IMF and World Bank delegation that is visiting the country.
“This will be the major challenge because only then can we be able to convince the international community to release badly needed financial aid.”
The recovery plan will require funding in excess of $5 billion, mostly from donors. The U.S. and EU have put in place targeted sanctions against certain individuals close to Mugabe and some Zimbabwean companies.
The policy document also warned against continued invasions and takeovers of mainly white-owned farms, saying offenders could be arrested.
Thousands of white farmers have fled Zimbabwe since land seizures began in 2000, a policy that Mugabe critics say helped destroy the economy.
The country’s farmers’ union said some white farmers were still being forced off land or being prosecuted for refusing to leave.
The document said the government wanted to promote confidence in farming and investment in the sector. “The inclusive government will uphold the rule of law as well as enforce law,” it said.
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let them ignore the sanctions cause they are glad when zimbabwe sons and daughters are dyeing of hunger. UNITED STATES AND BRITAIN keep your sanctions zimbabwe is a better place with or without your so called sanctions who cares as long as i live and still go to my bed. AND YOU OBAMA you are acting like one of them now silima your ears are even b**** than your head . TO you GORDON BROWN you are a scottish idiot with one eye your brains are full of water totally drenched
editor is b i gg er an insult? i thought n i g g er was the bad one did you go to schoo?l why are you putting your bleeding stars on my words i do pay for my broadband treat me with respect.
what is moribund
Does Merit ever say anything positive?!…I hope she aint married otherwise i’d feel pity for the unlucky fella…nag nag nag!lol
Some of us are drunk in the abusive language and it well take time for them to sober up.Some of us are watching it will take time for us to be convinced that they are now sober. There are elements who are still infringing on the rights of others and law is still applied selectively. We are still against what the donors recommend before releasing aid and they are watching. If we begin to be sincere in our actions and to the GNA and restrictions would be removed.Merit we are now moving in a new despensation were logic and sanity prevails. Calling people names and whatever abusive language does not bring sadza to Zimbabwe.Why the West only Our friends in the East have not denied us anything why not going there. China has large resrves of forex why not approach them.Lets be mature and solve our problems amicably, do not live in the past and continue to use outdated language. If we are not corrupt we would need minimal assistance to kick start our economy, we have resources everywhere in all dimensions.See others are running around spending sleepless nights trying to make Zimbabwe a better place whilst others are already searching for money to win elections next year. Are our priorities right what motivates us is it nation building or personal gain?
merit you don’t know what is good for the country you are just bitter that Biti is teaching you how to run finances, we are going forward and we will turn the economy around. Just the stumbling block mugabe in the picture less progress in our plan. Let the sanctions be maintained against mugabe he doesn’t derseve any favours. His speech wasn’t impressive full of foul language. Pamberi ne MDC,
Dynamos you are an extrimist not a nation builder you are always after those skimish ideas .Despite my gramatic mistakes i encourage you to have a paradignm shift torward your attitudes in the all inclusive gvt ok
sims you are not judging me correctly, the western powers will never release international aid or lift sanctions as long as mugabe is in power whether we like it or not, this is reality and am not an extremist as you are purpoting. We can do much more within short time and take the county out of this economic meltdown if mugabe is not part of the inclusive gvt.
MR MUGABE is there untill God takes him dont you even dream about him leaving us in this hardest time of our lives, like him or hate him he is our farther if you dont like him you have to live with it i’m very sorry, you have to respect those who liberated you from the monsters.
Merit is a STOOGE of MUGABE , the TYRANT and DEVIL of ZIMBABWE.
merit shame on you, mugabe didn’t liberate us on his own many other people were involved. The big question is what has he done after being one of the liberators, killings us, raping our mothers, operation murambatsvina, operation wavotera papi, gukurahundi, etc. I am not proud of this man I want him out dead or alive I am not proud of him and will never be proud of him. If he is not part of the GNU Zimbabwes economic recovery will move faster.
I concur with you Dynamos but i will always request you to reserve your comments where it is necessary but your ideologies sholud show reality Mugabe is there and he is there Mr Kiyaya Biti is there also they seem to be finding each other and dont worry things gona be alright soon ok
thank you for concuring with me sir or mam, it is good that they are finding each other.
I think sims misses the point that mugabe is a murderer and a human rights abuser Mr Kiyaya Biti is not one. Biti has got to pretend to be getting along with mugabe for the sake of progress deep down in his heart he knows what a devil mugabe is. The less said of him(mugaybe) the better, if he can resign today, tomorrow investors and foreign aid will just be in abundance in Zimbabwe. Sims look at it that way, why do you think Obama who was democratically elected still mantains sanctions of mugabe?
The ideology of Mugabe of a One Party State and Marxist state just does not work as you have all witnessed , takeing Viable Farms from farmers who kept the country fed and greased the economic wheel of Zimbabwe was a massive error and put all of Zimbabwe into bankruptcy. The Zim Dollar is useless and the only place for it is in the bin. A new currency will take years to be trusted , so I think stick with the US$ or GBP£ will be the only way at this time.
We as Zimbabwe should stand up against this one party state nonsense, I know that mugaybe knows that the majority of Zimbabweans do not want him in power anymore. There are a few confused zanu supporters like scarface, merit and the like who still support such an oppressor. Zimbabwe was liberated by a number of people mugaybe was one of them and we should not be held at ransom because mugabe was in the struggle, he was not alone vakomana.
the fact is: he is the leader of those who liberated you. Sleepy pple wake up now b4 its too late
Perhaps Mugabe and Co should dip their hands in their own grubby little pockets first before expecting handouts from those bastads like me in the West. Bob could start by selling his 40 million Hong Kong dollar house…. apparently he paid cash for it!
“The reported purchase by Zimbabwe’s President Robert Mugabe and his wife Grace of a luxury house in Tai Po shows Hong Kong still has trouble implementing tightened international curbs on money laundering, say bankers, lawyers and financial investigators.
While leading financial institutions will not deal with Mr Mugabe and his family to avoid the risk to their reputations, smaller banks, remittance agents and property lawyers may do so, whether willingly or out of ignorance…..
…..Britain’s Sunday Times newspaper reported last month that the Mugabes had bought a house in Tai Po’s JC Castle complex, an Emperor Group project. Records show it was bought through a shelf company in July for HK$40 million, and that no mortgage was taken out on it. Mr Mugabe has denied buying a house in Hong Kong but says he rents a property in the city in which his daughter – a student – and her friend stay.
http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=dbfb8f561d920210VgnVCM100000360a0a0aRCRD&ss=Hong+Kong&s=News
We are sick and tired of mugabe please this man has stole enough from us he should just retire from politics and leave us alone does he want to die in the throne? If mugabe was a true leader he would stand down to give a chance for the economic recovery of the country. Guys enough is enough we need to awaken the Zimbabwean dead dollar.
Merit is a sleepy head, his Brain has ceased to work and it’s needle is stuck on Mugabe.
wena steve ngingumfazi mina dont call me a he hamba uyefela khatshana angifuni kuchithekelwa ligazi elilomkhuhlane wake wamuzwa kuphi umerit wesilisa kanje lijayele izitabane
merit ungumfazi shame on you **** ngoba you don’t feel for the Zim children that have suffered through the dictactorship, this is shocking to me that you are such a believer of a man who has no heart(mugaybe).
You should be glad that MDC came into the picture otherwise the economy was heading for disaster, we will build what you have destroyed because we will not get into power with a dead Zimbabwe dollar at the next elections. No one from your side has ever answered the question on who will be your Presidential candidate in the next elections in 18 months time or so?
GUSENI IT SHOULD BE JOYCE MUJURU
Merit!