Chakravat said if the country manages to retain the surrogate currency within its borders, the cash crisis will improve.
“So all the bond notes will come back into Zimbabwe, there will be free trade, there will be a lot more cash within the system,” he added.
He applauded the central bank’ initiative to promote a legalized currency market through bureaux de change, but said it should allow a free exchange of the surrogate currency along with other currencies that circulate in the multicurrency system.
“So what we need to do is to legalize the system and create a market. The Reserve Bank has taken the first step already by trying to extend the bureaux de change,” ChakravatI said.
“I believe that with the Rand and bond note unpegged from the US dollar, we will be able to resolve the cash crisis.”
Chakravati has previously argued for the adoption of the South African Rand as the primary currency in Zimbabwe.
Zimbabwe abandoned its own hyperinflation-ravaged currency in 2009 in favour of the US dollar, but a widening trade deficit, lack of foreign investment and a decline in remittances by Zimbabweans abroad have helped to fuel foreign currency shortages.-The Source
Ed: Sounds like the good professor is saying the bond note should be the Zimbabwe dollar
See also:
Zimbabwe bond note black market booms across borders
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