SENIOR STAFF WRITER
©️ THERE is growing pressure on the government to ditch the collapsing Zim dollar and reinstate the multi-currency system, anchored by either the United States dollar or the South African rand, to stem the country’s looming economic implosion, the Daily News reports.
It also comes as a pressured President Emmerson Mnangagwa has instructed under-fire Finance minister Mthuli
“Our resolution in the last Tripartite Negotiating Forum (TNF) as labour was for employers to start paying their employees using the US dollar with effect from 30 June 2020.
“This is because the Zim dollar has lost value and is not making any sense for workers who are confronted by soaring prices of basic commodities and services on a daily basis.
“The only way forward is to adopt the US dollar or the rand given South Africa is our major trading partner,” Moyo told the Daily News.
“The conditions for re-introducing the local currency were never there, and what we are seeing is the market showing the government that Statutory Instrument 142 of 2019 was a total failure and disaster.“The only way we can get out of this disaster is by re-dollarising the economy. Re-dollarising will assist to resolve the country’s major challenge, which is low production,” he said.
“The US dollar worked for us in 2009 and helped turn around the economy, which had literally collapsed.
“Right now we are in a similar situation, if not worse, where the local currency is losing value, prices of basic commodities are soaring beyond the reach of many and the exchange rate on the parallel market is running amok.
“It will end inflation and … enhance production,” renowned academic and economist, Tony Hawkins, told the Daily News.
“We are witnessing abductions and human rights violations which are further alienating the country from the international community and painting a bad picture of the country to foreign investors.
Another veteran economist, John Robertson, said introducing the US dollar now would be a good step — which needed to be complemented by improved local production.
“Adopting the US dollar alone will not solve the problem. We need to increase production, attract foreign currency through investment and build reserves of our own which we can use during difficult times.
“The US dollar is not just adopted as a currency, it is earned, and the only way we can earn it is if we increase production and start exporting and also attract direct foreign investment,” Robertson said.
In 2009, Zimbabwe binned its then worthless dollar and introduced a multiple currency system which was anchored by the US dollar.
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