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AuthorJefferis, Keith; Chigumira, Gibson ; Chipumho, Erinah
SubjectMonetary Policy
Date of Publication2013
PublisherZimbabwe Economic Policy Analysis and Research Unit (ZEPARU)
Number of Pages45 pages
Geographical CoverageZimbabwe
KeywordsMonetary Union in Africa, Common Monetary Area, Exchange Rates, Zimbabwe Dollar, Financial Sector Development
AbstractThe purpose of this paper is to revisit the issue of Zimbabwe’s optimum future currency regime choice in the light of experience in the Zimbabwe economy and developments in Southern African Development Community (SADC) with regard to regional integration, as well as general global experiences with regard to currency regimes. The paper noted that the MCR has endured for four years and has brought much-needed macroeconomic stability, albeit with some unresolved issues - such as the constrained credit environment and banking sector liquidity issues. The Euro-zone crisis has brought about some re-thinking of plans for regional monetary integration, and for this and other reasons the likelihood of a single SADC currency in the foreseeable future has receded. The paper concludes that none of the possible exit routes from the MCR that are discussed in the paper, would be obviously superior in the short term. In this regard the paper recommends that MCR should be retained while its shortcomings are addressed and the pre-requisites for a successful exit in the medium-term are addressed and further economic reforms implemented.
Copyright HolderZimbabwe Economic Policy Analysis and Research Unit (ZEPARU)
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Filesize1163883 MB
File FormatPDF
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