Zimbabwe currency crisis and the requisite for reforms
There has been debate on whether the fixed exchange rate between bond and the US dollar should continue or the exchange rate should be allowed to freely float. Neither of the two options works because both their effects are the same. The continued use of bond note and RTGS (Real Time Gross Settlement) is not meant to preserve value or avoid catastrophe. The continued use of the local Zimbabwean currency is a time bomb, the authorities are simply trying to delay the inevitable disaster. The amount of RTGS is not a factor which should stop the demonetization program. If the amount of RTGS is nine billion, at one point it is going to be thirty billion and probably a trillion, currency reforms should not be deterred by the figure. The authorities need to find a way to implement the currency reforms. In my opinion a plan of demonetizing the local currency in phases over a period of nine months was going to be a better o