They offered to pay for Russian oil in Zimbabwean dollars
Zimbabwean authorities are interested in purchasing Russian oil directly and would like to pay in domestic currencies, Christopher Mutswangwa, a spokesman for the country’s ruling ZANU-PF party, told RIA Novosti.
According to him, Zimbabwe, apart from energy carriers, would like to buy fertilizers and agricultural machinery from Russia. “We need at least 50,000 tractors so that we can develop agriculture,” said Mutswangwa.
Zimbabwe will not be able to pay for supplies in traditional world currencies, admitted: country has been under US sanctions for 22 years
An “alternative way” according to Mutswangwa would be to trade using national currencies – the ruble and the Zimbabwean dollar.
“Our banks must find a way to make the Russian ruble and the Zimbabwean dollar freely convertible,” he explained.
A textbook example of hundreds of millions percent hyperinflation, Zimbabwe’s economy has gone through three denominations in the last 20 years: in 2006, three zeros were cut off the Zimbabwean dollar, in 2008 – 10 zeros, and in 2009 – 12 zeros.
After the final redenomination, when Zimbabwean dollars were exchanged for new ones at a rate of one trillion to one, the authorities decided to basically abandon the national currency and only resumed its issuance in 2019. In 2020-22, the new Zimbabwean dollar lost 97% of its value and entered the top of the world’s worst currencies, second only to the Venezuelan bolivar.
According to Mutswangwa, Zimbabwe’s gold reserves could support trade in national currencies. “We currently mine 35 tonnes (gold – ed.) per year, but we could mine all 50. So we could think about securing our trade with gold reserves,” he explained.
In addition to oil, Zimbabwean authorities are interested in Russian investments, Mutswangwa said: Russia “could help” build an oil pipeline to Mozambique, as well as invest in the construction of a metallurgical complex.
Earlier, a delegation from Sverdlovsk region visited Zimbabwe on a visit during which the possibility of joint projects in the field of metallurgy was discussed.