Browsing: Zimbabwe dollar

President of Zimbabwe Emmerson Mnangagwa delivering his solidarity statement during the Southern African Development Community (SADC) Solidarity Conference) Heads of State and Government.
  • Business and government relations in Zimbabwe are at an all-time low, the general economy slows down, and the value of the local currency tumbles
  • The government has had an adversarial relationship with businesses because of conflicting interests in Zimbabwe
  • The business stands accused by the government in Zimbabwe of sabotaging efforts to stabilise the economy by indexing the price of goods and services to a parallel market

Relations between the government of Zimbabwe and the business community have been at an all-time low.

After the central bank summoned retailers and manufacturers for the Sunday Mail, a Zimbabwean government publication called a “no holds barred” meeting slated to take place on Tuesday, July 19. The agenda of the meeting offers no end in sight to the frosty relations between the two parties. The Sunday Mail carried this story with the headline, “RBZ summons retailers, manufacturers”.

Even though the publication called the …

  • The vice president masterminded the palace coup that overthrew long-time ruler Robert G. Mugabe and installed the current president.
  • The Reserve Bank of Zimbabwe (RBZ) has published a statement naming and shaming individuals in the illegal foreign exchange market.
  • Zimbabwe took the decision to demonetize its defunct currency in favour of a basket of foreign currencies led by the US dollar.

There are several activities that pose a serious and real threat of physical harm when conducted in Zimbabwe.

These include political activism, especially if you are anti-establishment or anti-government. If an individual is an activist for human rights, he or she is more likely to have brushes with the law the way a common criminal would.

It is tragic but true.

Added to this list are the illegal foreign exchange dealers. The government has determined to crack down on these individuals whom it blames for sabotaging the economy …

  • Zimbabwe did not have a parallel market for foreign exchange in the years running from 2009 to around 2016.
  • Zimbabwe is heavily reliant on imported products and expends more foreign currency than it can afford.
  • Demand pressure has contributed to the fall of the Zimbabwe dollar resulting in general inflation.

To dollarize or not to dollarize?

This question has robbed monetary authorities of sleep as the Zimbabwe dollar falls precipitously on the parallel market.

Zimbabwe did not have a parallel market for foreign exchange in the years running from 2009 to around 2016.

It all began with the introduction of a surrogate currency that was fallaciously pegged at par with the United States dollar. The authorities initially posited that the surrogate currency was supported by a loan facility extended by the Africa Export-Import Bank (Afrexim Bank).

This loan it was said underscored the parity of the currency. It did not …