Opinion / Columnist
It never rains but, it pours for Zimbabwe's economy
18 May 2024 at 11:17hrs | Views
For over ten years, Zimbabwe has struggled with its currency. Since 2008, this is the nation's sixth attempt to introduce a new one, the ZiG.
Zimbabwe's central bank introduced the Zimbabwe Gold, a new currency, in April 2024 as part of the government's most recent effort to stabilise the economy. Most of citizens in Zimbabwe have started losing hope already, as most business facilities are not accepting the new currency Zig. Even the government is reluctant to use its own currency to cover other services like petrol and passports.
Compared to the US dollar, the value of the new ZiG currency is already decreasing.
It is currently trading at Zig20 to USD1, having devalued by much to 25% on the underground market thus far. Roughly Zig13.5 to USD1 is the official rate.
Everyone from state utilities to street vendors accepts payment in US dollars.
Because of the popularity and value of the US dollar, black market forex dealing is a thriving side hustle which some of the youths are earning a living from this practice due to lack of proper jobs.
As a result, Zimbabwean authorities are now targeting forex brokers and apprehending large numbers of them. Well, this is not new as, President Mnangagwa and his government frequently use this tactic of attempting to deflect criticism from themselves, when they are criticised for not delivering what they promised.
Hyperinflation rate keeps on increasing, causing individuals to lose their savings, pension and wealth.
The true problem facing Zimbabwe's economy is lack of trust in the local currency,due to mismanagement in government.
Zimbabwe's central bank introduced the Zimbabwe Gold, a new currency, in April 2024 as part of the government's most recent effort to stabilise the economy. Most of citizens in Zimbabwe have started losing hope already, as most business facilities are not accepting the new currency Zig. Even the government is reluctant to use its own currency to cover other services like petrol and passports.
Compared to the US dollar, the value of the new ZiG currency is already decreasing.
It is currently trading at Zig20 to USD1, having devalued by much to 25% on the underground market thus far. Roughly Zig13.5 to USD1 is the official rate.
Because of the popularity and value of the US dollar, black market forex dealing is a thriving side hustle which some of the youths are earning a living from this practice due to lack of proper jobs.
As a result, Zimbabwean authorities are now targeting forex brokers and apprehending large numbers of them. Well, this is not new as, President Mnangagwa and his government frequently use this tactic of attempting to deflect criticism from themselves, when they are criticised for not delivering what they promised.
Hyperinflation rate keeps on increasing, causing individuals to lose their savings, pension and wealth.
The true problem facing Zimbabwe's economy is lack of trust in the local currency,due to mismanagement in government.
Source - newsday
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.
