This past week the Confederation of Zimbabwe Industries(CZI) announced that they were going push for the government to replace the US dollar with the South African Rand as the main transacting currency. The CZI made similar proposals towards the end of last year.
However, the CZI’s proposals have been met with derision by acclaimed economist and cuurency expert Steve Hanker who is a professor of Applied Economics and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at the Johns Hopkins University in Baltimore in the United States. Prof. Hanke feels that this would be a terrible idea and could worsen the situation as he considers the South African Rand to be “one of the world’s junk currencies.” Prof. Hanke took to twitter to criticise the CZI’s proposal saying
Confederation of Zimbabwe incompetent. Wants Zim to de-dollarize and switch to the SA rand, one of the world’s junk currencies.
Confederation of Zimbabwe incompetent. Wants Zim to de-dollarize and switch to the SA rand, one of the world's junk currencies.
— Prof. Steve Hanke (@steve_hanke) January 27, 2017
We hope the CZI will be able to take Prof. Hanke’s concerns in their plans. Last year Professor Hanke had an interview with The Independent in which he explained why bond notes would be a disaster for Zimbabwe.