In February, Finance Minister Mthuli Ncube called time on bond notes in favour of the RTGS dollar and established a managed (local) interbank floating foreign currency market. HOWEVER, in spite of that the list of businesses moving towards the US dollar includes some of Zimbabwe’s corporate giants. Internet service provider Zol — controlled by Econet Wireless Zimbabwe — charges US$ prices for its home and office internet services. Retailers such as OK Zimbabwe, TM Supermarkets, Pick n Pay and Spar, as well as fast-food franchise KFC, are charging US$, and tyre retailers advertise their products in US$ currency. Even state-owned enterprises have joined the bandwagon. For example, TelOne, a government-owned fixed-line telephone operator, is charging US$ for its data services.
It’s as if the economy has "silently dollarised".
Why? The problem is that most Zimbabweans have very little faith in the central bank as the government’s lack of restraint in running the currency printing press and its creation of all manner of monetary instruments have done it no favours.