Renowned world economist, Steve Hanke says Zimbabwe’s local currency has fallen by 88 percent against the American dollar since January 2022.
He maintains that the country should fully dollarise and do away with its central bank.
“Since January 2022, the Zimbabwean dollar has depreciated against the USD by 88%.
“Zimbabwe is in 1st place on this week’s Hanke’s #CurrencyWatchlist. #Zimbabwe must mothball the Reserve Bank, and officially adopt the USD,” he says.
Apparently, the Zimdollar recently breached the 1000 mark on the official rate.
Zimbabwe is now measuring inflation using a weighted average of items priced in Zimbabwean dollars and U.S. dollars.
Previously the official rate was based only on items in the local currency.
The U.S. dollar is widely used in the southern African country alongside the Zimbabwean dollar and South African rand.
The government relaunched the Zimbabwean dollar in 2019 after a decade of dollarisation, but in 2020 it authorised the use of foreign currencies as part of measures to respond to the COVID-19 pandemic.