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Zimbabwe Industry Group Calls for Adoption of Rand as Sole Currency

The Confederation of Zimbabwe Industries noted that many businesses generate revenues and pay workers in U.S. dollars but must source goods and materials in South African rand

With Zimbabwean Finance Minister Tendai Biti due to present his 2010 budget this week, the Confederation of Zimbabwe Industries called Monday for the adoption of the South African rand to replace a multi-hard currency monetary regimen.

In a report to Biti, the CZI said the multi-currency system is not sustainable as most businesses pay their workers in dollars but pay rand for most of their goods and materials - which have become more expensive in U.S. dollar terms as the rand has appreciated in recent months.

Economist Godfrey Kanyenze said the CZI recommendation is sensible, but noted that adopting the rand depends on Harare meeting certain South African conditions.