What is apparent, given the situation obtaining on the ground, is that the government has in practice dollarised, but insists the local currency is “the currency of choice”, a far cry from reality.
The tumbling of the local currency which shed nearly 79% of its value on the first day of being floated under a foreign currency auction system on Tuesday, can only spell danger.
Yesterday, Finance and Economic Development minister Professor Mthuli Ncube’s response to questions from NewsDay on the rejection of the local currency by the market did not inspire any confidence.
Fuel price has risen to US$1,28 from between US$0,90 and US$1,05 and from $21 in local currency to $70 per litre.
What must be made loud and clear is that the local currency has failed to work and the government has sneaked the US dollar into all aspects of trading but is not paying workers using the same.
