Tuesday, June 25, 2024

Zimbabwe: Mnangagwa says a new currency is a must

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Isaac Kaledzi
Isaac Kaledzihttps://en.wikipedia.org/wiki/Isaac_Kaledzi
Isaac Kaledzi is an experienced and award winning journalist from Ghana. He has worked for several media brands both in Ghana and on the International scene. Isaac Kaledzi is currently serving as an African Correspondent for DW.

When Zimbabwe introduced a new currency called the RTGS, or Real-Time Gross Settlement dollar in February this year it was meant to deal with it’s worsening economic situation and restore some stability.

But that has not been the case, with the RTGS losing value significantly and throwing the country’s economic plans into chaos.

The country prior to that used the U.S. dollar as its national currency but the currency was in short supply.

The shortage plunged the country’s financial system into chaos leading to closure of some businesses and unrests.

When the RTGS was introduced, on February 22, the exchange rate was RTGS $2.50 for every US $1.

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But the value of the currency has lost value over 20% a signal that introducing a new currency might not be the magic in stabilizing Zimbabwe’s economy.

However Zimbabwe’s President, Emmerson Mnangagwa on Friday said his country needs another new currency by end of year.

He argued that this would help stabilise prices and inflation.

At an event in south of the capital Harare Mnangagwa said “As a country we must have a our currency by the end of this year, we have started that journey.”

It is however not certain how a new currency will change the dynamics of the Zimbabwean economy.



Source: Africafeeds.com

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