De-dollarisation to cause capital flight without foundation: Dube

CONFEDERATION of Zimbabwe Industries chief economist Cornelius Dube says if de-dollarisation occurs without ZiG transactions dominating the market, there will be massive capital flight as the economy is awash with the greenback.

In recent months, the government has announced plans to de-dollarise the economy, yet, according to official estimates, it generates at least US$14,2 billion in annual revenue from the informal economy and has the equivalent of US$3,85 billion in the formal sector.

However, from the formal side, only 70% to 80% is actual foreign currency.

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