The Confederation of Zimbabwe Industries said the government had given the wrong signal to the market because it appeared that the government was more determined to get the United States dollar at the expense of its own currency.
“If the policy objective is still to ensure that the ZWL$ does not lose relevance in this environment of accelerated dollarisation, the following, if implemented as a package, could help,” CZI says.
The industrial body listed some of the costs of full dollarisation as follows:
Zimbabwe reintroduced the local currency in October 2018 saying it was at par with the United States dollar but it began losing value immediately.
The situation got worse in June 2019 when the country outlawed the use of multiple currencies but it was forced to restore their use until 2025 but the damage had already been done.
The central bank now says more than 70% of the transactions in the country are in United States dollars.
The interbank rate is currently at $871.14 while the black market rate is as high as $1 300.
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