Top economist warns of Zim dollarisation

BY MIRIAM MANGWAYA
ZIMBABWE is expected to dollarise its economy because of the collapse of the local currency and the failure of its auction system to stabilise the exchange rate, renowned scholar and economist Gift Mugano has said.

Mugano, who is director for Africa Development Economic Strategies, made the remarks at a pre-budget seminar for MPs in Harare in his presentation titled The State of the Economy: Are We On Course Towards Achieving the Aspiration under the National Development Strategy 1?

He told MPs that measures that had been put in place by government to manage the exchange rate and to “clean out bad money” were insufficient to stabilise the economy.

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