Suppose it was correct that Ecocash was creating electronic money, ie The aggregate money in the Ecocash wallet was more than money held in the bank accounts, fueling the black market. Does the evidence support this conjecture?
The black market rates I’m told are Approx, RTGS 100, Ecocash 80, Bond 60. The strongest form of ZWL is Bond notes, then Ecocash and RTGS in the bank is the weakest. What are these prices signally in terms of supply of each in the market?
If we remember well in my essay, a price is just a signal it contains no virtue or moral signal. It’s not that black market dealers like bonds more than RTGS. But that the supply of Bond notes is limited compared to bank transfers. Ecocash remains as a surrogate of demand deposit
If Ecocash was creating money and unjustly inflaming the parallel market the price on the parallel market would reflect this. But as surrogate it’s only reflecting bank balances. As of now it’s RTGS from RBZ that’s out of control. In one week they created $600m ZWL.
