Govt should adopt bond notes as the official local currency, and not as a surrogate says Prof. Chakravarti
University of Zimbabwe economics professor and government’s top advisor on Ease of Doing Business reforms, Professor Ashok Chakravarti, has urged the government to officially use the bond note as the local currency instead of pegging it at 1:1 with the United States Dollar.
Professor Ashok Chakravarti coaching the TWG on mining ease of doing business. There are two team leaders, Isaac Kwesu, Chamber of Mines of Zimbabwe CEO and Minerals Marketing Corporation of Zimbabwe’ general Manager, Masimba Chandavengerwa.
Government advisor says dollarisation is a dead end, Bond notes to be a fully fledged currency by Dec
GOVERNMENT advisor and University of Zimbabwe lecturer, Ashok Chakravarti, says the liquidity crunch will continue as long as the US dollar remains in circulation.
Ashok Chakravarti, who also advises the Office of the President and Cabinet on improving the ease of doing business, told a Confederation of Zimbabwe Industries (CZI) symposium on Thursday that hard cash in circulation inclusive of bond notes and US dollars was five percent of total bank deposits which has contributed to the country’s liquidity crisis.
University of Zimbabwe economics lecturer Ashok Chakravarti said the projected underperformance of South Africa, Zimbabwe’s main trading partner will affect exports.
University of Zimbabwe Professor Ashok Chakravarti and World Bank Zimbabwe’s Crispen Mawadza said besides improving the macro-economic and fiscal environment, adoption of the Rand would benefit the stagnant economy, in a paper titled “Liquidity challenges in Zimbabwe: Turmoil and Tenacity.”