The value of the RTGS dollar has continued to plummet on the black market, pushing up the price of goods and services beyond the reach of many.
Economic analysts have attributed the depreciation of the local currency against the greenback to policy inconsistencies by authorities.
Last week Finance Minister Mthuli shocked the public by announcing that Zimbabwe will have a new currency within 12 months.
Former Minister of Finance, Tendai predicts that by June this year, the black market rate will 1:10. In an interview with Daily News, Biti said:
I predict that by the end of June this year, it (the black market rate) will be 1:10 … in other words, people are becoming poorer and poorer.
Bad economic mismanagement is theft on people’s savings and this has been created by Mthuli Ncube … he lives in a reality-distorted world.
The reason why we are having high inflation is that we are not producing, and because we are not producing, we are not earning foreign currency in the form of export earnings.
So, we are eating that which other countries are producing. Our import bill is high, and our imports are paid in US dollars.
So, the US dollar has become a commodity … we have this disaster that it shoots up on the black market and when it shoots up the prices of everything go up while the value of wages goes down.
Professor Mthuli Ncube is the Minister of Finance and Economic Development.He was the Chief Economist and Vice President of the African Development Bank ,financial, economics, investment, and public policy expert, entrepreneur and academic. Professor Ncube divides his time between the private sector in Switzerland and... Read More About Mthuli Ncube
Real-time Gross Settlement (RTGS) is a fund transfer system where the transfer of money takes place from one bank to any other bank on a "real time" and on a gross basis. Settlement in "real time" means a payment transaction is not subjected to any... Read More About RTGS