Biti: Zimbabwe Should Dollarise But Retain Zim Dollar
Former Finance Minister Tendai Biti has said Zimbabwe should dollarise but retain the Zimbabwe dollar so that the local currency serves as change while the United States is used as a storer of value.
Speaking during an interview at New Zim TV’s premier weekly show, The Agenda, Biti, who is Citizens Coalition for Change (CCC) vice president, said the Government should abolish the foreign currency exchange auction and allow the rate to be determined by market forces. He said:
Dollarise but retain the Zimbabwe dollar, abolish the auction floor so it finds its natural mark in the market. They dedollarised when the fundamentals were not in place.
There is no country that involuntarily dollarised which has been able to dedollarise because it is a confidence thing…what you can do is you dollarise, bring your currency so it serves as change, as a transactional instrument not as a storer of value, value continues being kept by the hard currency.
If Mangudya thinks he can do it, then he is a fool.
It is a confidence thing, we do not have confidence in Mnangagwa and that man with a high propensity to lie, [Mthuli] Ncube.
Biti, who was the Finance Minister in the Government of National Unity (GNU) between 2009 and 2013, said “ginyanomics” will not work.
Ginyanomics was in reference to the sort of economics practised by President Emmerson Mnangagwa’s government. Said Biti:
I always argue Ginyanomics do not work…there will be an implosion. Every tax is now in US dollars, even number plates are in US dollars, passports are in US dollars, so they are completely dishonest people, they are completely mendacious people, they are necrophilia, it is a disaster.
Biti said Zimbabwe has no surplus to talk about as it was being calculated in the local currency.
The aspiring Harare East legislator noted that parliament has assumed a ZWL$3.4 billion debt from the central bank despite the surplus.