A siege mood has enveloped a shattered populace in the wake of the impending bond notes, described by President Robert Mugabe as a surrogate currency to the United States dollar – the dominant unit in the basket of currencies underpinning Zimbabwe’s multi-currency regime.
It has become inevitable that the monetary authorities should act.
The liquidity crisis has worsened and business has slowed down to a crawl across all sectors of the economy, such that the growth projected this year by Finance Minister Patrick Chinamasa as well as the slump forecast by the International Monetary Fund (IMF) could be revised downwards once again.
The IMF projects the economy to shrink by -0,3 percent, from an earlier forecast of 1,4 percent. As expected, government’s forecasts are slightly higher.
Source – Fin Gaz