Persistently high inflation, elevated interest rates, and a slumping and volatile Zimbabwe dollar have combined to fuel a cost of living crisis for households and battered business activity. In the years following the switch to the US dollar, inflation receded until 2019 when the Zimbabwe dollar was re-introduced. In many ways, the return of the Zimbabwe dollar evokes bad memories of the inflation crisis of 2008 which still loom large for many people. The following reforms are crucial for addressing these structural weaknesses:Fiscal governance reforms to strengthen the budgetary process. Central bank governance reforms to promote autonomy of the bank’s operations, including monetary policy independence which is important for preserving price stability.

Source: Daily News Egypt August 11, 2023 07:12 UTC