Zimbabwe reintroduced the Zimbabwe dollar in June this year but it has been shedding value at an unparalleled rate since then.
News Day observes that the rate of depreciation a pointer of bad times ahead. The publication also says that had this happened in other jurisdictions beyond Africa, authorities would have admitted failure and would have resigned to protect their reputations. The publication added:
A more than 500% loss in value of any currency is simply catastrophic and so shocking that it should send someone’s blood pressure to hyper levels. But this is Zimbabwe, which happens to be in Africa, where the strangest of things have become so commonplace that an economic disaster is now being accepted as the norm. If this is yet another new norm for the southern African nation, then little wonder millions have been fleeing into self-imposed exile.
Authorities were warned against prematurely ditching the multicurrency system but they insisted that fundamentals to sustain the local currency had been established.
They argued that the continued use of the United States dollar stifled growth and put unnecessary pressure on the currency which is currently scarce in the country.
With production at its lowest levels in years this year, it is projected that there shall be sustained demand for foreign currency since businesses and individuals will be importing goods from beyond the country’s borders.
More: News Day