Zimbabwe’s new currency concerns

Policymakers are hoping the new currency will have people using banks again instead of the black market.

JOHANNESBURG – The Zimbabwe government has a trust problem as it introduces a discounted currency in a bid to reverse chronic cash shortages.

Business people have welcomed the decision to abandon an unrealistic dollar peg for the country’s surrogate bond notes and electronic dollars but they have expressed doubt about government’s ability to stick to its commitment to lower the budget deficit and keep inflation in check.

The last time Zimbabwe had its own currency, was a decade ago and continuing currency woes have undermined efforts to win back foreign investors.

Zimbabweans now wait outside banks for hours just to withdraw a maximum of $30 in surrogate money or collect remittances from relatives abroad.

Policymakers are hoping the new currency will have people using banks again instead of the black market to exchange any US banknotes they may have.

Watch the video below to see the business response to the new currency so far.

Our Ponzi Country – Zimbabwe Vigil Diary
A sound tree

Post published in: Business

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