Is Zimbabwe re-dollarising

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HARARE – Pricing trends witnessed in recent weeks where companies are resorting to charging goods and services in US dollars have triggered debate on whether the economy is marching towards dollarisation.

Despite the use of a basket of currencies for transacting, electronic payments and bond notes have been widely used, but it is the latest development of charging in US dollars that has sparked debate on whether the economy is marching towards full blown dollarisation.

“The latest trend is that businesses are now charging in US dollars is now getting widespread but it is unlikely that we will see full dollarisation because we have few dollars in circulation so we might not see a full blown situation,” said Mr Prosper Chitambara, an economist.

Zimbabwe National Chamber of Commerce (ZNCC) President, Mr Tamuka Macheka said charging in US dollars is permissible and businesses might be doing that in order to preserve value.

Industry has decried the full dollarisation as a threat to the country’s competitiveness, hence the continued call on government to effectively deal with the currency issue.