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The influence of The Multi Currency System on Financial Performance of An Organisation: Desktop Study

Author

Listed:
  • Rusvoto, Piwainashe

    (Midlands State University)

  • Sitsha, Lovemore

    (Midlands State University)

  • Wadesango, Newman

    (University of Limpopo, RSA)

Abstract

The purpose of this desktop study was to establish the influence of Zimbabwe's multi-currency system on the financial performance of organizations in the manufacturing sector. We have located the research of this paper within a qualitative approach (Gay 1992; Babbie 1998; Leedy & Ormrod, 2013). This decision was informed by the fact that this paper is not interested in the quantification of data. But its main interest lies in the painting of qualitatively rich picture of the phenomena being studied within the context of limited respondents (Hall, 2007; Maserumule, 2011; Baugh & Guion, 2016). To this end, the problem of this study is explained descriptively and theoretically for the purpose of generating a crispy understanding of the influence of Zimbabwe's multi-currency system on the financial performance of organizations in the manufacturing sector. Among others, this sources included journal articles, books, magazines and newspapers. The study established that the multicurrency system poses to have demerits which hinder the progress of the activities in the economy and business performance in that the adoption of multicurrency system causes the central bank to lose control over the monetary policy which triggers inflation to increase and hence thus an increase in costs of production to local manufacturing organizations.

Suggested Citation

  • Rusvoto, Piwainashe & Sitsha, Lovemore & Wadesango, Newman, 2023. "The influence of The Multi Currency System on Financial Performance of An Organisation: Desktop Study," Journal of Economic and Social Development, Clinical Journals Press, vol. 10(02), pages 01-12, September.
    • Handle: RePEc:ris:joeasd:0030
    as

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    References listed on IDEAS

    as
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    2. Haradhan Kumar MOHAJAN, 2018. "Qualitative research methodology in social sciences and related subjects," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 7(1), pages 23-48, March.
    3. Sandra A. Waddock & Samuel B. Graves, 1997. "The Corporate Social Performance–Financial Performance Link," Strategic Management Journal, Wiley Blackwell, vol. 18(4), pages 303-319, April.
    4. Michael Takudzwa Pasara & Rufaro Garidzirai, 2020. "The Boomerang Effects: An Analysis of the Pre and Post Dollarisation Era in Zimbabwe," Economies, MDPI, vol. 8(2), pages 1-20, April.
    5. Caroline Makumbe & Regret Sunge & James Zivanomoyo, 2020. "Zimbabwean Commercial Banks Performance under Multiple-Currency System: A Dynamic Panel Data Analysis," The African Finance Journal, Africagrowth Institute, vol. 22(2), pages 40-51.
    6. Ephraim Munanga, 2013. "Financial Challenges Faced by Retail Smes Operating in a Multi- Currency Environment. A Case of Gweru Urban, Zimbabwe," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(3), pages 377-388, March.
    7. Ephraim Munanga, 2013. "Financial Challenges Faced by Retail Smes Operating in a Multi- Currency Environment. A Case of Gweru Urban, Zimbabwe," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(3), pages 377-388.
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    More about this item

    Keywords

    Multi-Currency System; Financial Performance; Organizations; Manufacturing Sector;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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