THE Reserve Bank of Zimbabwe has become a de facto “secret police” that watches over transactions done at banks, mobile money and even text messages in a bid to protect the local currency that has weakened by 75% to date.
By Concerned, Reader
The local unit turns one this year, but it is one of the world’s worst. The gap is too wide between official and unofficial rates. At US$1:25, it’s unattractive for foreign currency holders to offload their United States dollars.
Business is booming on the alternative market where the Zimbabwean dollar keeps losing value day-in, day-out. These threats won’t work.
Companies are bleeding right now, this so-called fixed exchange rate doesn’t make sense.
On another note, a fizzy drink can is selling for $250 at a hotel or US$1 that’s forward pricing in anticipation of the Zimbabwean dollar value loss which is almost inevitable.
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The RBZ recently released a statement saying reserve money had increased by over 300% since end of last year which basically is a trigger for inflation and the tanking of our currency.
My question is, what needs to be done?