KWEKWE town clerk Emmanuel Musara says the current liquidity crunch could be solved if government makes the official trading currency the Chinese Yuan.
Speaking at a council finance meeting recently, Musara said if the government allowed the Chinese to open a bank in Zimbabwe, cash challenges would disappear, noting that the continued use of the United States dollar was straining the economy.
According to minutes seen by a local daily, Musara felt that things were better in Zimbabwe when the rand was standing its ground against the US dollar and debtors were paying their bills.
Kwekwe is facing serious cashflow problems and is struggling to pay its debts, especially with Zesa Holdings and Zimbabwe National Water Authority (Zinwa).
Zesa claims to be owed $10 million by the local authority, while the Zinwa debt is over $1 million.
- News Day
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