Former Finance Minister Tendai Biti has predicted that the depreciating Zimbabwe dollar will trade at $500 to the United States dollar in a few months.
The official rate on the Reserve Bank of Zimbabwe (RBZ) auction was $108.6660 to the greenback when the last auction was done on Tuesday, 14 December 2021.
On the parallel market, however, the Zimbabwe dollar trades at over $210 to the United States dollar.
Biti told NewsDay that the 2022 National Budget presented by Finance and Economic Development Minister Mthuli Ncube in November is “technically unsound”. Said Biti:
In a few months, it will hit 500, the rising rate has dramatic inflationary consequences and with half of our people living in poverty and 95% unemployed.
This only means the worst for our people and we have Ncube who is the quintessential definition of failure.
This is one of the most dishonest budgets ever presented. It’s a technically unsound budget.
It doesn’t meet the test for credibility and as I have said consistently this was a man just going through a ritualistic formality simply because section 302 of the Constitution demands that he has to go through the process.
Ncube announced a $927.3 billion budget for 2022.