American applied economics at John Hopkins University and currency expert Professor Steve Hanke says the Zimbabwean dollar is on a “death spiral” as foreign exchange market volatility intensifies.
It is now officially trading at US$1: ZW$90, while on the illegal market is around US$1:ZW$160.
Zimbabwean government have been cracking down on foreign currency traders saying they are causing market distortions.
Hanke warns that going after forex dealers is not the solution and will not end well.
“Zimbabwe’s currency is in a death spiral. Now, the corrupt government is threatening to suspend all businesses using black market exchange rates to price goods.
“I’ve seen this movie before. It has a tragic ending,” Hanke says.
Apparently, Nortorn Independent MP Temba Mliswa recently voiced that the black market rates shows true reflection of the country’s economy.
Zwnews
