Zimbabwe Grapples with Economic Uncertainty Amidst Currency Woes
The economic landscape of Zimbabwe is clouded with uncertainty as the informal sector, a key contributor to the nation’s economy, refuses to embrace the local RTGS dollar.
Compounding the issue is the delayed introduction of the new gold-backed currency, ZiG, originally slated for April 8th but now postponed until April 30th.
Representing approximately 75% of national employment, Zimbabwe’s informal traders have ceased accepting the RTGS dollar due to concerns over its dwindling value, leaving the US dollar as the predominant currency in circulation.
Economist Happy Zengeni voices criticism over the rollout of the new currency, emphasizing the need for stability and inflation control.
“New measures should inspire stability and lower inflation,” he asserts. “Transparency and discipline are essential throughout this process, as ordinary citizens lack the means to inject liquidity.”
Prior to the announcement of ZiG, the exchange rate stood at 28,720 RTGS dollars to 1 US dollar, prompting widespread apprehension among the populace.
Street vendor Mildred Mapfumo reflects the sentiments of many, expressing despair over the devaluation of her savings. “I rely on selling fruits to pay for my children’s education,” she laments. “My hard-earned RTGS dollars are now worthless, and I fear for our future.”
Zimbabwe’s history is marred by volatile currency fluctuations, with the RTGS dollar following the notorious bearer cheques. Citizens harbor deep-seated concerns regarding the efficacy of ZiG in curbing the nation’s rampant inflation and restoring financial stability.
Amidst the informal market’s rejection of the RTGS dollar and the delayed launch of ZiG, Zimbabwe’s economic trajectory hangs in the balance.
The success of ZiG in instilling confidence and stability in the nation’s financial system remains uncertain, underscoring the challenges ahead for Zimbabwe’s economic revival.
SOURCE:https://efficacynews.africa
