Time’s Right For Zimbabwe To Create A New National Currency

If the Constitutional Court upholds Emerson Mnangagwa’s election as president, he is expected to focus on currency reform.

Zimbabwe is one of the few countries in the world that does not have its own currency.There are six major currencies in free circulation, resulting in frequent cash shortages and long queues in Zimbabwean banks.

The currencies are the US dollar, the Euro, The South African Rand and the Chinese Yuan.

Zimbabwe bond rates  were added in 2016 by the Reserve Bank but their status is uncertain.

Financial analysts note that the reintroduction of a Zimbabwean currency is long overdue. They suggest that all foreign currencies earned should be held in reserve at the country’s Cenral Bank.

The fear is the reappearance of hyper-inflation, which brought down the old currency, the Zimbabwean Dollar.

But the right monetary policies, managed by an efficient Central Bank, backed up by government fiscal discipline, can keep inflation in check.

Domesticating monetary policy is prerequisite to fast economic growth, analysts insist.