The reintroduction of the Zim Dollar as legal tender and the banning of foreign currency, a decision which the government concurred with the Central Bank (RBZ) to make in June this year is infertile.
Can we possibly say that this decision was the Zimbabwean government’s way to prove that they have the monetary policy instruments to manage its economy?
This now all depends, as it can be justifiable to a certain extent because of a number of reasons; one of the most important being that the country is not eligible for any foreign support, for example, sanctions imposed by America’s Zimbabwe Democracy and Economic Recovery (Zidera) 2018 Amendments Act.
However, the move also implies a lost battle by the government as foreign money (US dollar) is still exchanging hands in the black market and in the many small businesses that crowd the country’s cities in their Central Business Districts (CBDs), especially the Harare (the country’s capital city) CBD.
The Government’s incompetent decision has contributed to it lagging behind and failing to control the system it once created and then banned.
Many issues affecting the economy have arisen due to such incompetence, causing Zimbabweans to suffer due to the high pricing of goods and services and high exchange rates which saw the rate sharply rising to 1:20 last week.
Certainly, the future of our country’s economy is blurred. It is uncertain whether the 2030 vision of Zimbabwe becoming an upper-middle-class income economy by the year 2030 by government will be achieved.
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