Renowned American economic analyst Steve Hanke has blasted President Emmerson Dambudzo Mnangagwa for appointing his son to the post of deputy finance minister, saying he is giving a masterclass in nepotism and stupidity.
Hanke who maintains that Zimbabwe should dump its local currency, Zimdollar believes Mnangagwa’s cabinet appointments do not inspire confidence.
He says since January 2022 the Zimdollar has fallen by 97 percent.
“ZIMWatch: Zimbabwe takes 1st place in this week’s Hanke’s CurrencyWatchlist. Since Jan 2022, the Zimbabwean dollar has been vaporized, depreciating against the USD by ~97%. Zimbabwe needs to officially adopt the USD,” says Hanke.
He says the Zimdollar among top 4 weakest currencies in world, along with the Venezuelan bolivar, Syrian pound, and Argentine peso.
On his Currencies Watch list, Hanke says he measured inflation in Zimbabwe at a staggering 821%/ year on 20 September 2023, making it the world’s highest rate.
Apparently, President Mnangagwa is on record saying he would not dump Zimdollar.
Meanwhile, the local currency depreciated by 6,43% on the Reserve Bank of Zimbabwe Auction platform in a development that authorities say is not cause for panic hinting it remains within safe margins.
A trading update released at the close of trading Tuesday shows that the official rate reached US$1: ZW$5 015 down from the premium of ZW$4 712 recorded last week to signify a 6, 43% decline.
Last week the local currency depreciated by 1,4% marking the first time ever after recording significant gains since June this year. In comparison, the parallel market rates are hovering around US$1:ZWL6 500 with traders willing to pay more depending on demand and supply advantages.
However, monetary authorities have maintained that the current depreciation on both markets will soon ease off since the premiums are not triggered by major economic drivers like liquidity injections.