Analysts at The Zimbabwe Mail have come up with 10 possible implications of de-dollarization and the introduction of the Zimbabwean dollar. These are:
- Artificial shortages of goods- retailers may withdraw their goods
- Price hikes – as retailers and the economy panics
- Lack of confidence in the Zim Dollar
- A stronger parallel market as the free-floating continues without control
- The government has no capacity to force the Zim Dollar on anyone
- People will eventually go back to selling their goods in forex
- The government will eventually go back to printing money to meet its salaries obligations
- The second hyperinflation advent
- New notes will eventually grace the streets
- Ultimately our Zim Dollar will again become useless.
The article, however, has these solutions that the government could employ to rescue the country from this nosedive:
1. At present Zimbabwe cannot afford a paper currency which has no economic value. The only feasible option is to adopt the Rand and price all goods and services in Rand as an interim measure pending an application to join the RMA
2. National Political Dialogue between Zanu PF, MDC, Civil Society, Labour, Business and Churches inorder to arrest the economic melt-down.
What other implications do you see from this change?
More: The Zimbabwe Mail