Top Economist Mugano Tells GoZ to Dollarise
Prices have skyrocketed with government accusing businesses of sabotaging its effort to improve the economy.
LOCAL economist Gift Mugano has said government needs to urgently consider dollarizing amid fears of hyperinflation adding that any other measures will not contain the drastic fall of the local currency against the USD and spiking prices.
In an interview, Dr Mugano said that the level of money supplied by the Reserve Bank of Zimbabwe (RBZ) and liquidity from the budget has been too high since last year, reaching at least 1000%.
Recently, Zimbabwe’s has witnessed the ZWL lose value and black market rates reach $3 000. In local supermarkets prices have skyrocketed with government accusing businesses of sabotaging its effort to improve the economy.
“At this stage, we need to dollarise. Last June money supply rose from $1.1 trillion RTGS to $2.3 trillion in December. On average, our money supply liquidity increased by at least 1000 %.
