“Govt Wants To Introduce Small Notes For Psychological Reasons” – OPINION

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


Quick NetOne, Telecel, Africom, And Econet Airtime Recharge

If anything goes wrong, click here to enter your query.

Comments

Back to top

3 comments on ““Govt Wants To Introduce Small Notes For Psychological Reasons” – OPINION

  1. Now Mthuli and Mangudya thinks the nation is a mental case they are now qualified shrinks to treeat us? Sometimes keeping quite and do what ypu have to do when you are not forced to talk is more respectful than playing ganes with us. The new money, no matter how they call or colour it is simply an extension of the bond note, and we will treat it as such, if not worse

  2. Kana mapedza kushora chishandisai dzenyu njere.Small denominations, a tried and tested tactic to thwart money speculators from hoarding money and keeping it away from the general populace.They will need trucks to take away that cash from circulation. Meanwhile the smalltime zimbabwean will benefit because that sort of money size is what he needs kuzokwira kombi, or change from the tuckshop. This is real intelligent monetary shit being practiced.Get educated accordingly IMHO.

Write a Comment

Your email address will not be published.