"Mthuli Ncube Has Done Nothing Outrageous," News Day Editor
News Day editor, Conway Tutani has argued that currency reforms by the finance minister, professor Mthuli Ncube were common practice globally.
His remarks follow the ban on the use of all foreign currencies for domestic transactions. Tutani notes that states often adopt controls which allow them to better manage their economies by controlling the inflow and outflow of currency.
Tutani writes:
So, the idea and principle behind Ncube’s decision is economically sound. Turning to the United States, yes, forex trading is allowed there, but the industry is much more regulated nowadays to prevent excessive trading and speculation that can drastically magnify risks and losses.
For forex trading, the US Commodities and Futures Trading Commission is the regulatory body. Yes, there is no laissez-faire; there are stringent regulations and restrictions. As one can see, the economic prescription is the same whether one is in Zimbabwe or in the US. So, forex controls do not make Zimbabwe any less democratic, as some elements in civil society allege, or the US any more despotic.
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Tutani further argues that the currency measures are meant to cushion the majority who have limited to no access to foreign currency. The editor observes that the economy, left alone, was slowly dollarising making life difficult for many. The quasi currency was losing value against the US$ at a faster rate thereby deteriorating the salaries of several workers.
More: News Day
