‘Zim dollar return premature’

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THE return of the Zimbabwean dollar as the sole legal tender was hurried and has not achieved its intended purpose, a research firm has said.
This comes as the economic environment in the country has continued to deteriorate following the changes on June 24, with the official exchange rate for the local unit against U.S. dollar dropping from about 1:8 to 1:14 since then.
“The introduction of the Zimbabwean dollar was hurried since the necessary conditions of six months import cover of foreign currency reserves (a minimum of US$3 billion), single-digit inflation, fiscal consolidation and stable exchange rates are lacking,” Africa Economic Development Strategies (AEDS) said in a State of the Economy report for the second quarter of 2019, which it did in conjunction with the Daily News.