CURRENCY REFORMS a Disaster for Zim Economy

“The only change to Zimbabwe's new currency will be the removal of the words bond note. No one is fooled” says Economist Steve Hanke

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Finance Minister Mthuli Ncube
Finance Minister Mthuli Ncube

LSC Press Release Number – 116

PRESS RELEASE

“The only change to Zimbabwe’s new currency will be the removal of the words bond note. No one is fooled” says Economist Steve Hanke

Harare, Zimbabwe., November 19, 2019

The Local Solutions Council cautions the NATION that the recently introduced new currency is not the solution to Zimbabwe’s current economic crisis, amidst strong evidence that the supposedly new currency is actually a continuation of the bond note. Moreover, the Local Solutions Council notes that the “new currency” is said to be part of President Emerson Mnangagwa’s monetary reforms to have Zimbabwe revert to using its own currency in place of the US dollar and the rand.

However, economist Steve Hanke of Johns Hopkins University in the US tweeted to say Zimbabwe will need to re-dollarize. “The only change to Zimbabwe’s new currency will be the removal of the words bond note. No one is fooled, Zimbabwe’s annual inflation rate is 513% per year. Zimbabwe must dollarize to crush inflation and ensure growth,” he tweeted on November 7. Furthermore; another economist, Tony Hawkins a professor of business studies at the University of Zimbabwe, said last Monday the new notes would not solve the country’s economic problems. “What it means is that we will probably have more cash around to feed the black market for currency,” he said.

Consequently, as Zimbabwe’s leading Think tank, the Local Solutions Council calls on the responsible authorities to turn around the nation’s economic fortunes and get on a path of inclusive and sustainable development by addressing key fundamentals negatively impacting on the economy, including; low production, hyperinflation, high unemployment and corruption.

Issued By

Darlington Nyambiya

LSC President

Local Solutions Council

Email: admin@thesolutionstower.com

Website: www.localsolutionscouncil.com

LSC Strategic Unit Members: Chairman – Darlington Nyambiya; Maxwell Saungweme; Kingstone Jambawo; George Mapope; Jethro Makumbe; Ophias Kurauone; Sten Manungo; Liberty Makusha; Clemence Nhliziyo; Norman Tembo; Tapfuma Mushayi; Prestige Matchaba-Hove; Cleopatra Magenga; Life Urombo

The Local Solutions Council is Zimbabwe’s leading Think Tank with members that are local and abroad but are from diverse Zimbabwean communities in academia, politics, business, religion and sports. The Solutions Tower is the media arm of the Local Solutions Council.