Movement for Democratic Change Vice President, Tendai Biti, has said that the US dollar is not sustainable for a small economy like Zimbabwe.
Zim Morning Post reports that the former Finance minister was addressing a SAPES Trust meeting on Thursday when he observed that the US dollar is overpriced. Biti said:
The US dollar is not sustainable for a number of reasons. It is overpriced so it makes our exports so expensive and it also makes the core structure of our economy so expensive.
In the last two years alone the US dollar has revalued by 19%. It is uncompetative for a small economy like Zimbabwe.
His remarks come just days after finance minister, professor Mthuli Ncube through Statutory Instrument 142 of 2019 banned the use of all foreign currencies for domestic transactions. The same SI also reintroduces the Zimbabwean dollar that was shunned a decade ago following a record high hyperinflation.
The new currency evoked mixed feelings. Some analysts argue that the move shall stabilise the economy whilst others are pessimistic noting that the government was supposed to establish fundamentals first. They say that the currency will not be sustained in the absence of these fundamentals.
In response, Ncube argues that increases in mineral production and a cut in domestic expenditure are some of the key fundamentals the country has already achieved.
Meanwhile, some businesses who are sceptical of the local currency have since raised prices for their commodities. Others left them unchanged whilst others are lowering them.
More: Zim Morning Post
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Tendai Laxton Biti is a politician and currently one of the 3 Vice Presidents of the Movement for Democratic Change (MDC). He was elected the vice presidency in May 2019 at the MDC Congress. Biti is also one of Zimbabwe's most prominent lawyers. Biti is... Read More About Tendai Biti
The Movement for Democratic Change - Tsvangirayi (MDC-T) formerly just the Movement for Democratic Change (MDC) is the main opposition party in Zimbabwe formed in an era of economic melt down and political unrest in 1999. The party was part of Zimbabwe's Government of National... Read More About Movement for Democratic Change
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