Renowned world economist insists Zimbabwe must dollarise or ‘perish’

Renowned world economist Steve Hanke has maintained that Zimbabwe must dollarise, if it is to control the local currency’s runaway inflation.

Commenting on the ongoing industrial actions by Zimbabwean teachers, Hanke says the citizens’ earnings is being eaten up by inflation.

“In Zimbabwe, the value of earnings continues to be eaten up by the inflation tax.

“Now, teachers in Zimbabwe can’t even afford to return to work.

“With inflation is soaring at 136.81%/yr by my measure, Zimbabwe’s only solution is to dollarize,” he says.

Apparently, Norton Independent Member of Parliament, Temba Mliswa has called for a motion to be moved in the House of Assembly to force President Emmerson Mnangagwa to address the house on the real state of the economy.

“Seems we have put ourselves under a lot of unnecessary pressure with the formal exchange rate. Time it’s allowed to float.

“As for the now oft said improving economy, can responsible government leaders tell us the improving figures in farming, mining, industry, employment etc.

“National economic improvement has to be tangible & inclusive. It can’t be a theoretical & hanging surplus which can’t be felt on the ground by the general person.

“People on the ground have to feel and see that the economy is improving before even reading newspapers.

“That’s why I think there is a need for a motion to have the President, as the principal national leader, come and address Parliament about the national situation,” says Mliswa.

Meanwhile, the Zimbabwean government has threatened to withhold the striking teachers’ salaries.

Zwnews