Source: Zimbabwe To Introduce A New Currency This Week – Tendai Biti – Techzim
Former Finance Minister, Tendai Biti has just said that the government is going to introduce a new currency this week. The introduction of a new currency is expected to coincide with the presentation of the Monetary Policy statement by Finance Minister, Mthuli Ncube this week. On his Twitter account, Mr Biti said:
The regime will this week introduce a new Zimbabwe currency not backed by any #reserves & without the context of structural reforms which a prerequisite of currency reform . That move is pure undiluted #insanity . An unbanked currency is just the #bond note by another name.
There is no country in the world that has involuntarily dollarized that has ever succeeded in de -dollarizing. Zim will not be the 1st .Whilst a currency is about fundamentals ,ultimately the most important fundamental is confidence There is absolutely no trust in this regime.
Considering the
#harm and#damage inflicted on this economy by its Central Bank over the years to now , the question to be posed is, does Zimbabwe really need a Central Bank? In my submission, it can and will do without one.
COMMENTS
Whilst his arguments are usually sound, I think Mr Biti should desist from this habit of pre-empting official announcements. Not only does it alert the officials (and arms them), it causes despondency/anxiety in the public often resulting in tragic consequences – August 1 is a case in point.