The Zimbabwean dollar has depreciated against the USD by 97.61% since January 2020, renowned world economist and applied Economics Professor at John Hopkins University, Steve Hanke has said.
Hanke says this is the reason why Zimbabwe is in 2nd place in this week’s Hanke’s CurrencyWatchlist.
He believes, to stop its economic death spiral, Zimbabwe must dump Zimbabwean dollar & the Reserve Bank, action system and officially adopt the USD.
The local currency has been losing its purchasing power at alarming rate and this has forced businesses to align their prices to the Zimdollar/ US$ rate of the day.
However, the government has threatened business calling them economic sabotaures.
Apparently, as a measure to store value, the government recently introduced the gold coins.
However, critics say it is an avenue for corruption.