Harare, Zimbabwe – (African Boulevard News) – As the Zimbabwean dollar loses ground against the US dollar, more voices are calling for a return to the US currency as the official means of exchange. The last time this happened was in 2009 when the local currency was eliminated and replaced with the US dollar.
The Zimbabwean dollar has lost its value drastically over the years, with 2020 being marked by inflation rates as high as 837%. This has significantly affected the country’s economy, with many struggling to put food on their tables or meet basic needs. The country needs stability, and many believe that reverting to the US dollar could bring some level of stability.
The idea of re-dollarization has been gaining momentum in recent months, with industry experts and stakeholders calling for it. John Robertson, an economist based in Harare, stated that “It’s only through the use of the US dollar that Zimbabwe can hope to regain some economic stability. We’ve seen this before and we know it works.”
Others are of the opinion that the country needs to come up with its own currency that is backed by significant foreign reserves. However, the government has not shown any sign of intending to introduce a new currency, with fears of the risks of depreciation and inflation.
In February of this year, the government allowed the use of foreign currencies in local transactions. This was a strategic move to provide a way out of the economic quagmire.
However, as the economy continues to struggle, more and more Zimbabweans are looking for a more lasting solution. The notion of re-dollarization is not without challenges, but it remains a viable option that could put the country’s economy back on track.
The government has not yet stated its official position on the issue, but as the calls for re-dollarization persist, it is in their best interest to address this matter urgently. As citizens continue to bear the brunt of a struggling economy, the need for a concrete solution cannot be stressed enough.
In conclusion, the issue of re-dollarization remains a contentious one in Zimbabwe. However, with the economy deteriorating, there is an urgent need to find a solution, and the introduction of the US dollar may just be the answer. Policy-makers must take note of this and work towards a solution that will benefit all citizens.
