Therefore, the following measures should be implemented before the national currency returns:There is need for macro-economic stabilisation, focusing on the credible reduction and stabilisation of inflation. Although Chile adopted inflation targeting and allowed the peso to float freely in 1999, indexation continued to be prevalent. It was ultimately reduced by targeting a fixed nominal interest rate instead of the inflation indexed "real" interest rate. Subsequently, peso deposits increased and reached 90% of total deposits in 2010.Egypt de-dollarised its economy in the context of macro-economic stabilisation and bank reform. These weekly new Perspectives articles are co-ordinated by lovemore Kadenge, immediate past president of the Zimbabwe economics Society.

Source: The Local June 26, 2020 06:45 UTC