Biti argued that the small denominations will be of no use as the economy has descended into hyperinflation. He said:
The madness continues unabated. These notes were printed long back in January 2019 but they couldn’t use them thanks to a tweet.
Now they are pumping same into a market which thanks to hyperinflation has no use for small units of $ 2 or $5. Arbitrage and rent.
On 11 February this year, Biti claimed that the RBZ was planning to introduce a new currency the following week. He used Twitter to make his claim.
The regime will this week introduce a new Zimbabwe currency not backed by any #reserves & without the context of structural reforms which a prerequisite of currency reform. That move is pure undiluted #insanity. An unbanked currency is just the #bond note by another name.
There is no country in the world that has involuntarily dollarized that has ever succeeded in de -dollarizing. Zim will not be the 1st. Whilst a currency is about fundamentals, ultimately the most important fundamental is confidence There is absolutely no trust in this regime.
#harm and #damage inflicted on this economy by its Central Bank over the years to now, the question to be posed is, does Zimbabwe really need a Central Bank? In my submission, it can and will do without one.