Has Zimbabwe resolved its currency issues? 

Tawanda Musarurwa 

Since the emergence of hyperinflation circa 2008, Zimbabwe has tinkered with a number of currency options in an effort to avoid the pitfalls and excesses of that era.

Over the intervening period, the country’s fiscal and monetary authorities have staggered from a managed float, to a free float, to a fixed rate and now to an auction system as they sought for the proper recipe.

All things being equal, experts say the success of any currency reforms must be underpinned by the implementation of an effective overall monetary policy framework supported by market-determined interest and exchange rates, together with prudent fiscal policies.

And all these measures seem to be in place with the Zimbabwe dollar – United States official rate range-bounding around 80 for the six to seven months.

But the continued existence of the illegal foreign currency market, with premiums still way beyond market levels, means there might be some factors that need correction.