Multi-currency or not?

It was about a decade ago when Zimbabwe went into recession, and the country struggled a great deal with petrol shocks, economic crisis, food shortages and homeless people. The reason for this big problem was because there was such great inflation. The Reserve Bank of Zimbabwe carried on printing more and more Zimbabwe dollar notes as soon as they ran out, which created hyperinflation therefore decrease the value of the Zimbabwe dollar. This what lead to Zimbabwe using multi-currencies/ international currencies such as “the United States dollar, Botswana Pula, British pound and South African rand to stem 
hyperinflation that had made the local unit worthless”, said Ndamu Sandu.

One Hundred Trillion Zimbabwe Dollars

One Hundred Trillion Zimbabwe Dollars

When Zimbabwe started using these different currencies, it definitely did help the situation in Zimbabwe a great deal. There were very few or no petrol ques and there was food on the shelves that was imported from South Africa or produced in Zimbabwe. However, this does not mean that the full economic crisis was resolved, as one can see that Zimbabwe is still struggling with the violence and politics that is taking place. And the country does not look nearly as close to how it should look, such as the conditions on the roads, shops, schools, business etc. I have witnessed this with my own eyes. It has been very good for the country and its people to use multi-currencies in order for the country to be more civilized. In saying that, Zimbabwe is seen as an independent country and so I feel that it should and would be advisable for Zimbabwe to have its own currency again. If the Reserve Bank of Zimbabwe did what a bank is supposed to do and not just print money because the feel they need to, the Zimbabwe dollar would hopefully stay strong and the economy would work in the way it should, with the people working and bartering with one another so that the economy flows naturally.

With the new constitution of Zimbabwe and the elections that are hopefully going to take place in July, Zimbabwe might bring back their own currency? If so, I feel that it is extremely wise for them to approach the Economic Commission for Africa (ECA) for advise on how to go about controlling the hyperinflation and resolving the ‘economic shocks’.  In doing so, Zimbabwe’s economy may improve dramatically, however the central bank must not print notes as soon as they see a shortage. The international community whom has strong economies already must control that this does not take place.

 

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