Economic commentator John Robertson said that it will be difficult for the government to officially dollarize because the money is simply not there.
His comments come as there are calls from different quarters for full dollarisation to be adopted. The bond note has lost value against the US dollar and some businesses are no longer accepting the local currency.
Robertson says that the government is paying its workers using money which is not there. He said:
The money is not there!… The primary base of the state’s taxes is in bond notes. What is merely happening is that real-time gross settlement (RTGS) systems are what reflects in workers’ bank accounts on payday, but there is no actual money to back it up. We have a bad reputation out there – even borrowing is out of the picture. It’s a tough road ahead.
Some service stations are now selling fuel in foreign currency. The government also announced last year that car importers will have to fork out duty in foreign currency.