With the government guaranteeing the use of the multi currency framework until 2025, the USD has emerged as a dominant currency, accounting for 61% of broad money supply.
According to economic analysts this is increasing pressure on the weaker Zimdollar as economic agents prefer a stronger currency.
The food, fertilizer and fuel crisis in Zimbabwe continues to be a major source of inflation pressure in 2023 both from a global and local perspective.
This also threatens the country’s food security prospects in the long run.
Apparently, renowned world economist Steve Hanke is on record calling on the Zimbabwean government to dump its local currency and fully dollarise.
Hanke who is an expert in trouble currencies world over has been publishing reliable inflation figures for Zimbabwe.
He says since January 2022, the Zimbabwean Dollar has lost 78% of its value against the USD, putting #Zimbabwe in 1st place on this week’s #CurrencyWatchlist.
“There’s no end to Zim’s economic crisis with President Emmerson Mnangagwa and Finance Minister Ncube at the helm. They must be IMPEACHED,” he adds.