Harare economist, Brian Sedze has estimated that the foreign currency black market rate will be at least 1USD: 1240ZWL in the next two weeks.
Writing on Facebook, Sedze said :
The country hasn’t increased its tax base so this increase of salary to civil servants , paltry as it is, will have to be financed by printing money (m3).
This mean on civil servants salary day the exchange rate and inflation will gallop to new highs.
The civil servants purchasing power will be worse than it is as at date.From my model I expect the rate to be ZW$1280 minimum on the alternative market within the month of July.
For the reason that the 100 percent is meaningless the government will accede to more which will the push the rate further and inflation higher!
What makes the situation dire is that the government need to print more to pay village heads who are earning US30 cents, Chiefs earning US$ 9, War veterans, new 160k war veterans, army, police, health, judicial services,grain imports,command finance,drought relief,political finances, parliamentarians and mega infrastructure projects in dams, roads, ports etc They need to print no less than 100 billion zw$.
This country is not devoid of money but is struggling on ideas to grow the economy.
It lacks common vision and its winner takes it all benefit politicians not Zimbabweans. They even disbanded the Tripartite Negotiating Forum! CCC wants power not to assist in a common room.Polad has no value addition.
