By Staff Reporter
The 2008 hyper-inflation is an experience that should never be repeated.
Chaos prevailed and life was unbearable, the government was forced to introduce notes as high as one trillion and Zimbabwe became a case study for people around the world.
For Zimbabweans, it was a traumatic experience, one that we never want to go through again. The multi-currency system brought stability and for a while we forgot the pain of galloping inflation.
A few years later, however, foreign currency shortages began. This created a different crisis proving that it is impossible to run an economy on another country’s currency.
The re-introduction of the Zim dollar is a very controversial topic with a lot of people resisting its return, but Zimbabwe needs its own currency and here are 5 reasons why:
1. *FOR OUR IDENTITY AND SOVEREIGNTY*
Every nation must have a currency of its own, as an extension of its identity. When a nation has no currency, it can be equated to not having a flag. A currency represents its people and is their voice on the global stage.
2. *IT ENABLES THE CENTRAL BANK TO FORMULATE A MONETARY POLICY THAT IS BEST FOR THE NATION.*
3. *THE US DOLLAR KILLS THE MANUFACTURING SECTOR. IT MAKES THE COST OF LOCAL MANUFACTURING OF GOODS HIGHER THAN IMPORTING FINISHED GOODS *
4. *PRICE DISTORTIONS ARE DONE AWAY WITH FOLLOWING THE UNIFORMITY IN THE EXCHANGE RATE AND PUTTING AN END TO THE THREE TIER PRICING CHALLENGE*
5. *WE DO NOT SUFFER THE EFFECTS OF ANOTHER COUNTRY’S DECISIONS*
While we understand the trauma that the return of the ZIMDOLLAR might unlock, it is important to know that temporary solutions are not the way out. Zimbabweans must embrace the local currency and allow it to flourish to benefit the country.
