By Davison Vandira
ECONOMISTS have been impressed by the increased circulation of United States Dollars in the formal and informal sector saying the obtaining situation is a function of improved confidence by economic agents that is expected to spur economic development.
The interbank platform is now the main source of forex for individuals and companies accounting for more than 80 percent of all the foreign currency obligations, a situation that has been triggered by a cocktail of fiscal and monetary measures which have increased confidence in the country’s financial ecosystem.
Economists are therefore convinced that the improved circulation of the United States dollar across all financial platforms will drive real economic activities that will spur economic development.
According to Economic Analyst Mr Kudakwashe Mugova, Zimbabwe has never had any challenges with respect to generating foreign exchange, but lack of confidence and trust meant economic agents dodged formal platforms.
“I am glad to note that our economic context has had a marked improvement in as far as the monetary fundamentals are concerned and currently we are witnessing free flowing of foreign exchange between the formal channels and informal ones which is a very good indicator of economic development,” he said.
Another economist, Mr Titus Mukove says after the country shaped its macroeconomic environment, it is time for the monetary leg to spearhead Zimbabwe’s economic transformation agenda.
“It is really exciting times for the country’s financial sector as are we witnessing massive circulation of the United States Dollars spelling a paradigm shift where people were demanding the US$ as a store of value instead of demanding it for transacting purposes,” noted Mukove.
If the current financial sector status quo is sustained, economists expect a surge of the country’s industrial growth which is a precursor to the attainment of Vision 2030.