The Reserve Bank Governor John Mangudya is in the process of presenting his Monetary Policy Statement. As part of his remarks, he has said that he believes that de-dollarisation is working without exactly giving any evidence to support this viewpoint.
We see the opposite
- If de-dollarisation was working people would prefer or at least not mind being paid in Zimbabwean dollars which is not the case
- A lot of individuals and businesses have a strong preference for the greenback
- There remains an acute shortage of foreign currency in the country which means those who get paid in the local currency will have a hard time sourcing foreign currency when they need it
- The interbank market is practically dead as most firms are not willing to dispose of their valuable foreign currency
- The Zimbabwean dollar remains a surrogate currency in most sectors