Biti posted the following 3 part thread below:
1)The regime will this week introduce a new Zimbabwe currency not backed by any #reserves & without the context of structural reforms which a prerequisite of currency reform .That move is pure undiluted #insanity . An unbanked currency is just the #bond note by another name
2)There is no country in the world that has involuntarily dollarized that has ever succeeded in de -dollarizing. Zim will not be the 1st .Whilst a currency is about fundamentals ,ultimately the most important fundamental is confidence There is absolutely no trust in this regime
3) Considering the #harm and #damage inflicted on this economy by its Central Bank over the years to now , the question to be posed is , does Zimbabwe really need a Central Bank ?. In my submission, it can and will do without one .
2)There is no country in the world that has involuntarily dollarized that has ever succeeded in de -dollarizing. Zim will not be the 1st .Whilst a currency is about fundamentals ,ultimately the most important fundamental is confidence There is absolutely no trust in this regimeTENDAI BITI@BitiTendai
The new currency was reportedly printed in China last year. Finance Minister Mthuli Ncube told a town hall meeting last month that a new local currency would be introduced in less than twelve months. He however hesitated to tell the meeting that the currency was already on its way.
“On the issue of raising enough foreign currency to introduce the new currency, we are on our way already, give us months, not years,” he said.
Locals are haunted by memories of the Zimbabwean dollar, which became worthless as hyperinflation spiralled to reach 500 billion% in 2008, the highest rate in the world for a country not at war, wiping out pensions and savings.
A surrogate bond note currency introduced in 2016 to stem dollar shortages has also collapsed in value.
President Emmerson Mnangagwa is under pressure to revive the economy but, in something of a vicious circle, the dollar shortages are undermining efforts to win back foreign investors sidelined under his predecessor Robert Mugabe.