In a shocking development, the RBZ has announced the return of the US dollar in Zimbabwe. The multi currency system had been banished in the country and the economy was starting to redollarise. In a sudden turn around, RBZ governor Mangudya recently released a statement pointing out that the transacting public was now free to procure goods and services using the US dollar.
The move has been a welcome relief for most people. The bond note has been weakening daily and prices have been skyrocketing. This has caused untold suffering for most. As prices of goods continued to increase, the US dollar was also increasing at am alarming rate. The governor has since issues an ultimatum that the rate should be pegged at 25 to 1 ratio of the bond note versus the US dollar. Thanks s has also been commended.
Zimbabwe’s monetary policy has of late become a sick joke. Most people lamented the removal of the multi currency system which had brought stability to the economy. The major challenge was that of people earning in bond notes and having to buy the US dollar at exhorbitant rates to purchase goods because most retailers were still charging in the prohibited US dollar.
It remains to be seen whether the new pronouncement will yield any results or less to even more disaster. Finance minister Myhuli Ncube seems to have been struggling to manage his ministry as evidenced by the economic crisis in Zim.