Bond notes a little too late
EDITOR — Let us call a spade a spade and admit that a mistake was made when salaries and prices for services and goods were pegged in United States dollars.
Zimbabwe became a sitting duck when commodity prices fell as China shifted from investment to consumption as strategy to grow its economy.
In the process, emerging country currencies fell in automatic re-adjustment to decreased investment opportunities, and thus FDI and portfolio investment inflows as well as export volumes and revenue declined.
By its use of the US dollar as the anchor currency, Zimbabwe lacked this safety valve.
Going forward, deep reforms, which include overhaul of many institutions, are necessary.
These also include both an austerity programme and de-dollarisation. Without fiscal reforms, and hopefully debt forgiveness and a bail out package, de-dollarisation is unlikely to succeed.
The bond notes story as told to date makes the nation a laughing stock of the whole world. It is also too small an initiative and possibly too late.
Lack of decisive action and reforms on time have inflicted enormous injury to the economy and national psychic.
The paralysis and uncertainty must be ended. Chirorodziva