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American Economist Says RBZ Should Be Disbanded

American Economist Says RBZ Should Be Disbanded

American economist Steve Hanke says the Reserve Bank of Zimbabwe (RBZ) needs to be disbanded, blaming the central bank for all the inflationary problems facing the country.

Hanke said there was a need for Zimbabwe to consider having a currency board. NewsDay Zimbabwe quotes him as saying:

You got to get the Reserve Bank out of the picture. The Reserve Bank is a real problem and that is one reason, by the way, that dollarisation went away after the unity government collapsed in 2013 because the central bank was there, ready to go, and they have done nothing but bad things ever since. They were doing nothing but bad things before, but they are doing bad things, obviously, now, very bad things. So that is one option.

About the only thing I would say about a currency board in Zimbabwe since I don’t trust the legal system in Zimbabwe or don’t trust the monetary authorities, I would suggest that the currency board should be located in Switzerland. It would issue Zimdollars and the reserves would be kept in Switzerland. It would operate under Swiss law.

Composition of the currency board:

He said it should be comprised of 5 board members, 2 from Zimbabwe, and three would be from foreign countries not close to Zimbabwe geographically. He says they wouldn’t be from Zambia or South Africa. 

Zimbabwe has since 2007 been experiencing a currency crisis. In 2009, the southern African country ditched its own currency, the Zimbabwe dollar, following record-high hyperinflation of  231 million per cent, according to official statistics.

As of August, the annual inflation rate stood at 285.02%, up from 256.9% in July, according to the Zimbabwe National Statistics Agency.

According to the RBZ, the local currency is trading at $580 to the greenback.

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26 Comments

Murakashi 3 weeks ago

Hanke is a puppet of ccc


Mdara Odza 3 weeks ago

What Professor Steve Hanke said is above your intellectual pay grade so you chose to ad hominem attacks instead of engaging into an intellectual argument. Uri dof.o

Citizen raPep naChisa 3 weeks ago

Zera rako wototy Professor wepaHavard angawanei achishandiswa nekaNerosoni,iwe chaiye uchitotadza kumutevera ?

DR WILLIAM SONBOY CHINEMBIRI 3 weeks ago

This prof Hankie pankie anodhunya which state functions with out a reserve bank ugooona twumbwa twe CCC tuchiti Ari right zvoshamisa kwazvo

Yours sincerely
D.r William Sonboy Chinembiri
[THE BUSH LAWYER.].


Chief 3 weeks ago

Our state is not functioning with the reserve bank...that means it's the problem, removing could be [could] a solution.

Machiavelli 3 weeks ago

Steve Hanke is only echoing what Zimbabwe's finest Finance Minister, Tendai Biti has always been saying.

My hope is that TB gets a second shot at the helm of Treasury Ministry next year. He may have to Kiya kiya, but I think he can get us out of this morass that we are in, financially that is.


Blue💙 3 weeks ago

Hanke may be educated but he's just ****.
Okay, you have formed a currency board, your money is in Switzerland, then what?
Continued reliance on other countries is what we should be avoiding.

cde chipopi 3 weeks ago

asi kunyepa here kuti RBZ ndiyo iriku konzera matambudziko e inflation nezvimwe zvese zve Mari zviri kushupa munyika. That bank is useless


Hanke Pakame Area 3 weeks ago

Hanke mugwere.Why should we disband the reserve bank? So that when the Zimdollar stabilizes we start afresh??


Machiavelli 3 weeks ago

Stabilization of the local currency would be the primary function of the Currency Board.

The Reserve Bank of Zimbabwe is currently a printing factory for Zimbabwean government overdrafts. it lacks autonomy, which why currency volatility is the name of the game in Zimbabwe.

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Crocodile 3 weeks ago

Unoswera uchingoti puppet kuvarungu asi zvese zvauri kushandisa zvakagadzirwa nevarungu kusanganisa iyo foni yauri kushandisa papindula yemahara varungu vokuudzai zvinoda kuitwa woti vanopenga kukanganiswa pfungwa chaiko neZanu iyo isina kana chayaitira vanhu munyika ino basa kuba chete


Kule 3 weeks ago

Zimbabwe should adopt batter trade, until we appreciate and understand modern economics. Mombe yava kuita mariyi nema ?


Kule 3 weeks ago

RTGS$

Sabhuku 3 weeks ago

He may be white but these are all facts. Even the top brass locally know it well too. Willpower ndoisingoripo chete, kusangoda


Murakashi 3 weeks ago

Hatizvidi

jz 3 weeks ago

uyo ngaazive zvekuAmerica kwete kuda kuziva zveZim hazvinei neye bcz haambozoshandisi zim$ ,,,ngaasaita ruzha,,,,kana akatengwa ngaataure zvakanaka ,,,,kana kuti arikutsvaga basa kuZim kt ave governor


Maparamuro 3 weeks ago

Complete madness. He wants the pact for continuation of colonialism like what is happening with former French colonies. Total madness. The political system in Zim needs fixing by Zimbabweans not foreigners.


Yoweeeeee 3 weeks ago

I'm not erudite. I cannot argue empirically with the learned Hanke whoever he is. Nevertheless I do not believe that any sovereign nation can run without a central bank. Unless it is a temporary measure to mitigate a crisis as is happening in our country. Yet the only solution lies in change of mindset. If the gvt decides to stop stealing,uphold the rule of law,respect property rights and allow others to think differently this country will flourish. The only encumbrance that precludes this country from progression is Zanuism. This ideology of takarwa Hondo so we must rape,abduct,imprison and steal ad infinitum is killing the economy

. 3 weeks ago

Ouch the truth is hurting 😢
Blue is having a bad day 😂

Blue💙 3 weeks ago

I second you. He's just a neo-colonialist, Nazi minded individual who looks down on other people. Screw him.

whatever 3 weeks ago

Zimbabwean people have been suffering for a long time whatever methods that can work let's implement it


pk 3 weeks ago

vakutya mameasures akuitwa ne rbz kuti anosimudza zimbabwe. please don't listen to american economists. bhora mberi ED. wakaita sa Puttin


MuPfungwe Chaiye 3 weeks ago

Hanzi Hanke is a puppet kanganwe kuti zuro uno that whole of a president aitopembera, dzaiva news dzekuti ndabatwa maoko nemurungu Blair


🤠 3 weeks ago

chokwadi chinorwadza


Blue💙 3 weeks ago

Okay, that was pure vitrial spewn by Hanke there. Why should we disband the RBZ again? Ridiculous! We are doing fine here in Zim, the economy is stabilizing and we don't need his advice- it's garbage by the way.
Those guys don't want to see us do our own things, currency board my butt


Kule Kule 3 weeks ago

Chagwadza!!!! Vagwadziwa unongo vavona uye kwavanobva unongoko kuvona 😂😂😂



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