Finance Minister Mthuli Ncube has come under fire for his statement that the Zimbabwean dollar is undervalued and should be trading at 6:1 against the United States dollar.
The local currency plunged to 25:1 against the United States dollar on Thursday before the central bank froze the accounts of at least four companies owned by close associates or relatives of President Emmerson Mnangagwa.
The rate appreciated to 15:1 and Mnangagwa told supporters in New York where he is attending the United Nations General Assembly meeting that it is likely to continue appreciating.
Critics were, however, sceptical about what they termed temporary solutions.
Movement for Democratic Change vice-president Tendai Biti, a former Finance Minister in the inclusive government, immediately shot back:
He was backed by Baba vaT: “You failed to make Barbican work and you think you can make Zimbabwe work? Just asking. If you failed on a small company which was “your brainchild” what more a whole country? Go back to your hole where you were hiding dude. Chinhu charema ichi hachisi chenyu.”
Renowned economist Professor Steve Hanke thinks Mthuli Ncube is delusional.
Mnangagwa said the Zimbabwe dollar was steady for six to eight weeks until some “smart” people found ways to manipulate the currency.
His administration, he said, had, however, become smarter but critics doubt this.