Zimbabwe News and Internet Radio

Zimbabwe must dollarise to crush inflation and assure growth – Steve Hanke

By Nyashadzashe Ndoro

Economist Steve Hanke has urged the Emmerson Mnangagwa led regime to desist from printing its own money adding that dollarisation can rescue the country from ‘monetary madness’.

Professor Steve Hanke
Professor Steve Hanke

Hanke on his micro blogging twitter handle said Zimbabwe was not experiencing hyperinflation but his year on year inflation measurement placed the country’s annual inflation rate at 286%\yr.

“While Zimbabwe is not experiencing hyperinflation currently, Zim’s annual inflation rate is 286%\yr. As long as Zimbabwe continues to print its own money, it will remain in the grips of monetary madness. It must dollarise to crush inflation and assure growth,” Hanke said.

Zimbabwe is facing currency challenges with the Zim dollar falling by over 100 percent against the US dollar.

Prices of goods have skyrocketed beyond the reach of ordinary citizens such that even the President of the Confederation of Zimbabwe Retailers also confirmed the mess citing that it has become impossible for retailers to price goods given that instability in currency.

Former Finance minister Tendai Biti is on record saying that the Zimbabwean crisis was unique in so far as it has never been experienced before.

“Zimbabwe has never experienced the kind of poverty, abuse, torture, cruel and degrading treatment such as seen in the 23 months of Emmerson’s government,” he said.

Nehanda Radio earlier this year reported Hanke saying that there was need for the government to instil confidence in the economy by extinguishing the controversial currency.

“The government must announce that it will not rob the holders of bond notes and RTGSs. They were issued at par to the United States dollar, and they will be redeemed at par by the issuer: the Zimbabwean government.

“The redemption at par will take place over a five-year period. During this period, the government will redeem the bond notes and RTGSs by accepting them as payment for taxes or any other obligations,” he said.

However, government through the central bank plans to introduce a new currency in November.