Former Minister for Finance and Economic Development, Tendai Biti said the move taken by the Reserve Bank of Zimbabwe governor, John Mangudya today to introduce a new currency, the RTGS dollar spells doom for the economy. Said Biti:
Modern functional States are founded on trust and transparency. That clearly is not part of the DNA of ZANU. The regime today disingenuously and mendaciously de – dollarized the economy by informally re-introducing the Zim dollar now called the RTGS dollar through the back door.
It is a disaster to embark on currency reform in the absence of key fundamentals to back that currency. These include market confidence, reserves, a decent Capital account, and a stable macroeconomic environment. This is elementary
Regrettably, the economy now enters another period of self-induced shocks that will see salaries and values being devalued, hyperinflation, shortages and queues. What a dog’s breakfast!!!