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Zimbabwe To Dollarise By June - Economist

Zimbabwe To Dollarise By June - Economist

A leading economist, Gift Mugano, says Zimbabwe’s economy could dollarise by June this year due to the massive erosion of the value of the Zimbabwe dollar on the parallel market.

Mugano, the executive director at Africa Economic Development Strategies, said that local businesses have lost confidence in the local currency.

Addressing participants during an Employers Confederation of Zimbabwe symposium in Harare on Thursday, Mugano also projected that inflation would shoot to 100% by June this year. He said:

When you pay Chinese construction companies in RTGS (local currency), do you think they will take RTGS back to China?

They will go to Roadport (the parallel market) to buy United States dollars).

Mugano’s remarks come as Reserve Bank of Zimbabwe governor John Mangudya told the Confederation of Zimbabwe Industries that Zimbabwe would be using its currency as the main medium of exchange by 2027.

Currently, the official exchange rate is US$1:$120, while the parallel market rate is US$1:$235.

Mugano said the official and parallel market rates would rise further, driven by huge payments in Zimbabwe dollars which would then be used to buy foreign currency from the black market.

He forecasted the rate to rise in June when tobacco farmers buy United States dollars using the local currency they would have been paid by the Government.

Mugano urged businesses to find ways of dollarising their operations to remain afloat.

He said since President Emmerson Mnangagwa’s government was inaugurated, more than 600 statutory instruments had been issued, creating uncertainty on the market.

More: NewsDay

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18 Comments

Hayley I 7 months ago

Tkt unoita nezvei


Hayley I 7 months ago

Kkkkk anoba nguvai kkkkk hakuna baba vemba vakadai

Al-haj Kane 7 months ago

Nezvekuba nekuswera pa pindula

zimboy 7 months ago

hachichashanda chimarii ichi chaoraa zvacho


Yvt 7 months ago

Mangudya is dreaming when he says we we still be using this worthless rtgs by 2027. Kusvika December using this ZWL$ will be a suprise. The whole economy has dollarises only in your imaginary land kuchiri kushandiswa rtgs.


MBOKO 7 months ago

Kkkk TKT akuvara neRTGs asi unonzwa achiti pamberi neZanu kusazivaso uummm zvimwe zvinonzwisa tsitsi anenge mpositori wekwaMarange chete kusafunga kwacho.


MBOKO 7 months ago

Kkkk TKT akuvara neRTGs asi unonzwa achiti pamberi neZanu kusazivaso uummm zvimwe zvinonzwisa tsitsi anenge mpositori wekwaMarange chete kusafunga kwacho.


MBOKO 7 months ago

Kkkk TKT akuvara neRTGs asi unonzwa achiti pamberi neZanu kusazivaso uummm zvimwe zvinonzwisa tsitsi anenge mpositori wekwaMarange chete kusafunga kwacho.


Hayley I 7 months ago

Taura hko mboko bcz kswera kwaanoita pano umm kkkkk nhamo irkutomunama big time


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Vybz Kartel 7 months ago

2027 Zim dollar richingotonga


uyu 7 months ago

Kartel imbiti yemunhu
zimbavha remunhu

Thrust 7 months ago

Hoyo Kartel wenyu inzwai zvaakutaur manje

Tkt 7 months ago

mboko yagara ingori mboko kana musinga zive. me i work for my family not zvenyu zvamuri kuwomoka ktaura izvo na@Harley wako.


Hayley I 7 months ago

That's gud but unoshanda nguvai tkt be honesty

Cobra King 7 months ago

Ndopika nababa Bona naChatunga bikai doro. Kwete naDambudzo hakuna dhorarayizesheni.


Al-haj Kane 7 months ago

Iwe @Tkt kushandira mhuri kwepi iwewe uchiswera pa pindula

Kempo 7 months ago

Dambudzo, Mangundya na Mtuli havaite dolarisation ZWD ndomari yebasa
Havana Mari yekupa macivil servants


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