The Bond/US black market rate will strike 1:10 by June this year,
Former Minister of Finance, Tendai has predicted.
In an interview with Daily News, Biti said:
I predict that by the end of June this year, it (the black market rate) will be 1:10 … in other words, people are becoming poorer and poorer.
Bad economic mismanagement is theft on people’s savings and this has been created by Mthuli Ncube … he lives in a reality-distorted world.
The reason why we are having high inflation is that we are not producing, and because we are not producing, we are not earning foreign currency in the form of export earnings.
So, we are eating that which other countries are producing. Our import bill is high, and our imports are paid in US dollars.
So, the US dollar has become a commodity … we have this disaster that it shoots up on the black market and when it shoots up the prices of everything go up while the value of wages goes down
The value of the RTGS dollar has continued to plummet on the black market, pushing up the price of goods and services beyond the reach of many.
Economic analysts have attributed the depreciation of the local currency against the greenback to policy inconsistencies by authorities.
Last week Finance Minister Mthuli shocked the public by announcing that Zimbabwe will have a new currency within 12 months..Dailynews