A legal expert and political analyst, Alex Magaisa has said Tuesday’s announcement by Zuva Petroleum that it is now selling fuel in foreign currency at selected service stations shows that the government has failed to stem the tide of re-dollarisation.
The renowned legal expert asserts that the government’s currency reforms were premature and ill-thought out. Magaisa wrote on Twitter:
The government is unable to stem the tide. It’s not long ago when it prematurely announced the return of the Zim dollar, declaring it as the sole legal tender and banning the use of forex. But here we are with fuel companies openly selling in forex under the so-called DFI scheme.
DFI refers to direct fuel imports by fuel companies. But if the logic applies to fuel imports, it must apply to other imports. So if fuel importers can have DFI sites, millers will demand DFI sites for roller meal. Same for other goods. In short, we’re back where we started.
Critics told the government that their currency reforms were premature and ill-thought out. But the government was adamant. The irony is that these companies that are leading the redollarisation movement, they are owned by political elites and other PEPs.
I have always maintained that it wasn’t the government that dollarised in 2009. Rather, the government simply followed the market.