Zimbabwe Independent columnist, Faith Zaba has said that the introduction of the new notes and coins as intended by the Central Bank, the Reserve of Zimbabwe (RBZ) was not of much help to the current situation.
Zaba said that authorities are only introducing the notes for impression management purposes, to give the idea that all was well.
She added that the strategy will fail as the masses do not have confidence in the currency. Zaba said:
Stability is only derived from the trust people have in the currency. If economic policies and fundamentals are unsound, the new notes will be shunned. Small denominations of a currency that is not trusted cannot guarantee restoration of confidence. Deception and cosmetic changes do not add value to the currency.
She urged the government to increase production, cease printing money and to restore or “defend private property rights so that investors and exporters have confidence that their earnings will not be subjected to restrictions”.
Meanwhile, some economists are urging the government to re-dollarise so as to crush inflation and to assure growth.
More: Zimbabwe Independent
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