Farai Dziva|MDC deputy president and former Finance Minister Tendai Biti has described Mthuli Ncube’s economic policies as disastrous.

Biti told Daily News on Wednesday Mthuli Ncube’s textbook policies would trigger further economic chaos.

Biti said:

The move by Mthuli Ncube is an ill-thought one. We are currently facing shortages of foreign currency and we have no productivity in Zimbabwe to support economic growth and the local dollar.

Floating the Zimbabwe dollar will result in the exchange rate shooting up, triggering hyperinflation and price increases.

What Mthuli has done will result in a serious devaluation of salaries. For example, today people who are earning $7 000 with the current parallel market rate of 1:40 are earning around US$200.

In just a few weeks the parallel rate will hit 1:100 and that is when it will be clear that Mthuli has failed.

The other thing that will follow is the shortage of every essential that is imported, including electricity, fuel and medication.

If we do not have these essentials like electricity and fuel then we cannot talk about production and economic growth.