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"Zimbabwe Dollar Dead By June"

Renowned economic commentators, Gift Mugano and Anthony Hawkins have urged the Government to accept that the Zimbabwe dollar has been rejected by the market and re-dollarise the economy.

This comes as annual inflation rose to 131.7% in May, from 96% in April, according to the Zimbabwe National Statistics Agency (ZimStat).

The local currency has also depreciated against the United States dollar on the official market, falling to US$1:$290 by Tuesday, compared to US$1:$258 the previous week.

Mugano projected that the domestic currency will dead by June this year, adding that the Government itself is rejecting the Zimdollar and has opted for the US dollar. Said Mugano:

We are increasing our debt and we won’t be able to defend our currency. Even the government does not want to use its own currency.

It paid bonuses in US dollars, it is paying COVID-19 allowances in US dollars, and tollgates are now paid in US dollars.

We are not qualified to fight for the Zimbabwe dollar because the government itself wants the USD.

In fact, the market has dollarised, we are at a funeral, and we are going to the grave to bury the Zimbabwe dollar.

Mugano said when the country de-dollarised in 2019, after a decade of a multi-currency system, the economy was not ready for the local currency. He said:

The strength of the currency is reflected in its productive capacity. You do not go and support the local currency at a rally and campaign for it, you need production.

The second aspect is you must have fiscal consolidation. You must not have debt because when you have a growing debt then you also have vulnerabilities in the economy when the currency is attacked.

Hawkins argued that dollarisation would be painful but it is the only way to tame runaway inflation. He said:

The public doesn’t want to hold the Zim dollar. Yes, dollarisation would be painful, no doubt. But will it be more painful than an inflation rate of 400%?

The opponents of dollarisation will tell you that this is because saboteurs are destroying the local currency. That is not the case.

People are acting rationally, they are trying to protect their livelihoods, they are trying to protect their pensions, and they are trying to protect their savings from the predatory policies that are being followed at the moment.

The exchange rate is a reflection of what is happening in the economy.

Another economist Persistence Gwanyanya, however, warned against full dollarisation. He said:

Every one of us would want some dollars in his pocket now and every business may want to have the economy dollarised, but it is not the most effective currency option.

Dollarisation is costly. The Justice Smith Commission established that we need to compensate about $5 billion for the loss that occurred in 2009.

Right now we have got about $277 billion in the accounts. When we dollarise we need to first convert all those into US dollars or people will have to lose that.

More: NewsDay

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20 Comments

getto yut muputi wedomnbo 1 month ago

chawora chinhu ichi register to vote


Dyd 1 month ago

imagine gyz ZANU yowinner 2023 election apa 1 US inenge yavaeequivalen to 1000000 Zim dollar...ummm


big bill 1 month ago

saka makuti maU$ acho achatanga kuwanika june as basic salary


. 1 month ago

Dollar-rise


gandangaguru 1 month ago

let's not dollarise pliz ini ndoda kukwira zupco neRTGS, zvekupa zupco usd handidi hangu


Dr Hercules 1 month ago

Stupid thnking about Zupco of all thing, unogara mu bhazi

Asalif 1 month ago

it's a currency for boarding Zupco bus , payment of bills, school fees and salaries of civil servants


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Machiavelli 1 month ago

Nyika inovakwa nevene vayo. A country should have its own currency and not temporary currencies. Otherwise you remain dependent. The situation we have is all about economic saboteurs and a negative minded industry.
Pamberi ne Zanu Pf.
Pamberi ne Vision 2030.
Pasi NeZvimbwasungata.
Pasi Nemhanduuuuuuuuuuuu.


Machiavelli (The Original Don) 1 month ago

Non contendere ("No contest"(

Tateguru 1 month ago

True


Chawabvunza 1 month ago

While Mangudya and Muthuli Ncube have always told us that it is us the citizens who are rejecting the RTGS, real economists Gift Muganhu and Anthony Hawkins tell us the truth that it is the market which have rejected the RTGS in favour of the us$.

HOVE IKAORA MUSORO INENGE YATOORA YESE.

NGAAPINDE HAKE CHAMISA.

[ VOTE CCC FOR REAL CHANGE ].


THE KING CCC FIEND 1 month ago

@Factos your comment was 100% massive I quote,"If you give England to Zimbabwean leaders and Zimbabwe to England leaders, in 5 years time people will be migrating to Zimbabwe 😂😂😂😈😈😈


Jabulan 1 month ago

We are dollarised allready but its only unofficial


🤔🤔😄😄😄 1 month ago

Telling It as it Is
pachokwadi ithiniso leli When The Big Guys Talk
Those who went to School telling those who bypass it 👎


VYBZ KARTEL 1 month ago

NYIKA INOURAWA NEMBAVHA DZAYO. HOVE INOTANGA KUVORA MUSORO


Patriot 1 month ago

Vana Percy chozivikamwa hapana.


🙄🙄🙄🙄🙄 1 month ago

Hezvo ka izvo Va Percy Gwanyanya
Comment 👽👽


BOSS VEDAH 1 month ago

Dollarisation is just on the doorstep. Checkbon how the official rate is now running away. Vaguta ka maUSD evaitora mahara vakungoti regai tichikwidza rate riendere ne the aREAL rate(black market). Ana Doctor Mugano awo dnt under-estimate them they speak sence. Zanu pf yakundikana.

NGAAPINDE HAKE CHAMISA.

VOTE CCC 2023.


Eny 1 month ago

Zimdollar is like paper there is no anywhere wego as zimbabwe


Blue 🔵 1 month ago

ZIMDOLLAR IS USELESS LIKE A USED TISSUE.

VOTE FOR CHAMISA. VOTE FOR CCC

NGAAPINDE HAKE CHAMISA (NHC)



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