Global economist Professor Steve Hanke Commented on today’s move by the RBZ to introduce a new currency that combines Bond Notes, Bond Coins and RTGS Balances.
He believes the RBZ has just compounded the problem:
Zimbabwe’s Min. of Fin. Mthuli Ncube has just officially blessed a huge devaluation in Zim quasi currencies and said they will float. He should have added that they won’t float on a sea of tranquility, but sink.
With the creation of RTSG dollars, which are simply composed of RTGS balances, bond note and bond coins, the Reserve Bank of Zimbabwe has changed nothing. Bond notes and RTGS$ are cancerous and must be removed from Zimbabwe‘s monetary system.
By combining bond notes and RTSGs into RTSG dollars, the Reserve Bank of Zimbabwe has only compounded the problem. Instead of adding another currency to its shell game, it should have gotten rid of its quasi-currencies all together.
Download: Full RBZ Monetary Policy Statement PDF (February 2019)
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More: Prof Steve Hanke on Twitter