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American Economist Says RBZ Should Be Disbanded

American economist Steve Hanke says the Reserve Bank of Zimbabwe (RBZ) needs to be disbanded, blaming the central bank for all the inflationary problems facing the country.

Hanke said there was a need for Zimbabwe to consider having a currency board. NewsDay Zimbabwe quotes him as saying:

You got to get the Reserve Bank out of the picture. The Reserve Bank is a real problem and that is one reason, by the way, that dollarisation went away after the unity government collapsed in 2013 because the central bank was there, ready to go, and they have done nothing but bad things ever since. They were doing nothing but bad things before, but they are doing bad things, obviously, now, very bad things. So that is one option.

About the only thing I would say about a currency board in Zimbabwe since I don’t trust the legal system in Zimbabwe or don’t trust the monetary authorities, I would suggest that the currency board should be located in Switzerland. It would issue Zimdollars and the reserves would be kept in Switzerland. It would operate under Swiss law.

Composition of the currency board:

He said it should be comprised of 5 board members, 2 from Zimbabwe, and three would be from foreign countries not close to Zimbabwe geographically. He says they wouldn’t be from Zambia or South Africa. 

Zimbabwe has since 2007 been experiencing a currency crisis. In 2009, the southern African country ditched its own currency, the Zimbabwe dollar, following record-high hyperinflation of  231 million per cent, according to official statistics.

As of August, the annual inflation rate stood at 285.02%, up from 256.9% in July, according to the Zimbabwe National Statistics Agency.

According to the RBZ, the local currency is trading at $580 to the greenback.

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9 comments on “American Economist Says RBZ Should Be Disbanded

  1. Can Zimbabwe publication stop reporting this nonsense by a nonentity? Who is Steve Hanke? He is quoted here and there, just because he mentions Zimbabwe. He has never held an position in his life that gives him expertise on the Zimbabwe economy. Don’t the editors have the knowledge and skills to interrogate his intellectual base? Don’t disgrace yourself by regurgitating nonsense. Just because he is a white American doesn’t make him a god.

  2. DIXON RBZ is zanu pf looting and corruption vehicle. You are part of the looting EDiots who are enjoying the loot. Be objective and see why Zimbabwe 🇿🇼 economic situation is in intensive care.

    1. I am surprised to accept this effrontery , that as foreign body be responsible for your country’s economy, as if it is not enough that the U$ has done more harm than good for the people. But then some of you have slave mentality? Tell me a country which has followed such a path, just one country. Are you going to blindly follow any white idiot who makes an opinion about your country.

      1. Yeah because the local authorities have been stellar in their currency policy? They cannot be trusted to do what is right. The last 20yrs are enough evidence of that, I don’t know what else you need to see that the country needs a different direction.

    1. Please Pindula do not give this cowboy any airtime. He is jumping on the Zim bandwagon to feel relevant. All the big countries have gold coins but when Zim introduces them its a crime. Do not listen to a man who comes from a country that has slaughtered 20 million people since the second World War and still preaches human rights.

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