Sunday , May 16 2021

The & # 39; Zim Economy Unofficial Dollar & # 39; – Daily News Live

Hare – Zimbabwe bond notes are substituted and under progressive unofficial dollarization, economists have said.

More than this citizens love the national currency historically in favor of a more stable US Dollar.

Zimbabwe abandoned its inflation-quarrel Zimdollar in 2009 and adopted a foreign currency basket. Since then, the US Dollar is the main currency of the transaction as well as the South African rand.

After introducing surrogate currency, bond notes in 2016, the shortage of cash in recent years has gradually been confusing the economy, which is half-a-half in the beginning of millennium.

In November 2016 – In an effort to ease the cash deficit, the government gave $ 200 million bond notes – equivalent to the US dollar.

Zimbabweans use the black market to get the US dollar and they are forced to pay a premium.

These premium end-customers are eliminated by customers by increasing prices of services and services.

However, due to tight liquidity the downward price pressure continues, and the Reserve Bank of Zimbabwe (RBZ) has already injected almost all the funds available for the bond note issue in the economy.

Negotiations with Affrangbank to secure additional loans to bring back these notes. Once RBS introduced additional millions of bond notes.

Both the World Bank and the International Monetary Fund (IMF) have expressed concerns about the loss of value against US Dollar bond notes, which promotes inflation.

Both organizations have a similar attitude, predicting inflation to be predicted.

Severe shortage of foreign investment at the highest level since 2010 controls the supply of basic commodities.

In September, inflation rate was 20.85 percent in October, compared with 5.9 percent in October and on a monthly basis, the price of 0.92 percent in September rose by 16.44 percent.

Zimbabwe's October inflation has been at its highest level since 2008, because oil prices have increased due to the country's dollar shortage, oil and flour and sugar prices have increased.

Leading economic analyst, Canti Mathiey, said it was important that any valuable bond notes would be supported by the same amount of US Dollar to help defend their value.

Economists argue that Zimbabwe is now under semi-official dollar, another name for a bi-monetary system where two separate currencies are legally known and spread simultaneously.

According to the American Policy Forum (GPF) paper, the basic basics of dollars written by the famous American economist Curt Schuller, Dollarization occurs when residents of the country make extensive use of foreign currencies with or without local currency.

Economist Simbert Gavenszy told the Daily News on Sunday that the country was "really relieving" and most retailers are demanding their prices for parallel market rates for RTGS and adopting the US Dollar with the exception of some. "

"This will lead the market to cash in US dollars for the benefit of discounts.

"The shortage of USD balances will slow down demand and this will reduce prices.

"We're looking for a short-term difficult time," said Gwenzie.

The fluctuation in the prices of basic commodities between the shortage of foreign currency, the cost of life has increased slightly, thus reducing the salary.

Donding of bond notes by the American dollar has ensured a public-free market, the government's monetary policy is contradictory, which supports the currency 1: 1 equality, economists said.

Expert economist Karen Pandirieri said that due to the official position of the government it is difficult to approve the issue of redemption, which states that Zimbabwe is still using the Multaranasi system, however the private sector otherwise suggests.

The sharpening of foreign currency has made the situation worse, many businesses demand price for the black currency market exchange rate, currently it brings anything up to 300%.

Renowned economist John Robertson told the Daily News Sunday that the market is decisive in current trends in the economy.

"Businesses charge US dollars for the survival of their business, because these are the people who are employing most Zimbabweans.

"The financial policy statement of October 1 is conflicting with the budget statement, and at the same time, the Zimbabwe Revenue Authority (Zimbabwe) is contradictory with the Reserve Bank's statement on bond notes two years ago.

"The American Dollar is the reason for making formal and getting rid of bond notes and RTGS, but due to the lack of foreign currency the government can not do it," Robertson said.

Another economist Brain Mukmeva said: "In the current currency of multiple currencies, the growing choices in the US dollar reflect on the desire to preserve the working capital, wealth and value of earnings by financial agents.

Muchmeva said that the government has played an important role in protecting the value of RTGS, as more than 90% of the transactions on the National Payment System are in RGGS.

Zimbabwe's Reserve Bank governor John Mangudiya has said that there is no currency crisis with Zimbabwe but there is a shortage of foreign currency, which he has defined as the differences between the foreign currency and demand that is currently being generated in the country.

Their comment comes as firms, which have US Dollar-daemon bank balances, are struggling to make external payments for raw materials and machinery.

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