adminHarare Bureau
THE Confederation of Zimbabwe Industries (CZI) will today hold a symposium on internal devaluation of the dollar, as part of national efforts to enhance competitiveness of local industry to drive economic recovery. The conference will take place at the Meikles Hotel, in Harare, and follows call made by the central bank on the need to explore means to internally devalue the dollar in the absence of monetary tools for a country using foreign currencies adopted in February 2009.
Zimbabwe dumped its own currency to counter the ravaging impact of hyperinflation, which peaked at about 231 million percent at the height of its economic crisis in 2008.
There have been concerns from different circles over the downside of the multi-currency, dominated by US dollar; especially its effect on industry in light of the depreciation of the currencies of Zimbabwe’s major trading partners.
Economic analysts have advocated that Zimbabwe joins the Rand Union, while others have called for the return of local currency, but there has never been unanimity on which of the suggested solutions works best for the country.
However, CZI believes in the continued use of the multi-currency, despite challenges posed by depreciation of South African rand and Zambian kwacha.
Other experts, including the Reserve Bank of Zimbabwe have recently called for internal devaluation of the dominant and national reporting currency, with lessons to be borrowed from the experiences of countries such as Latvia and Lithuania.
Discussions will focus on cost drivers in Zimbabwe: analysis and recommendations and debate on whether internal devaluation is a strategy Zimbabwe should actively pursue.
Online Reporter