“Zimbabwe used to be the bread basket of Africa”
Boy, am I tired of that statement. I’m tired of us reminiscing on the good old days. At least now thankfully, I won’t have to continuously endure the “lest we forget” statement that always used to be thrown at us each time some kinda propaganda needed to be pushed.
Nonetheless, now that we have a new government, or rather, a relatively new government, this has to change. In fact, if the President and his government are not selling us dreams; then from the way things are looking, we are moving in the right direction. The nudge from the United States of America also comes in handy at this time of ‘rebuilding the walls’.
So, the US government has encouraged Zimbabwe to have its own currency rather than rely on the USD. Not only has it encouraged the government to do so, but it has promised to help out through the process as well.
Of course USA has a point there, depending on other countries’ currencies isn’t ideal. However, the migrating to our own currency talk isn’t something totally out of the box because it was already a part of Mr President’s plans. In fact, Hon Mnangagwa spoke about that when he was still the Vice President, but now that he runs the show, excuses should be minimal.
Some might argue that getting our own currency now would be moving too fast, Zimbabwe isn’t ready yet; but the question is when will it be? It takes a bird to jump out the nest for it to learn how to fly. I know we’ve been that bird that flew too high at some point, lost balance and came crushing right into the ground… twice! So at this point, traumatic is what seems to best describe the experience and that could be the potential setback.
The economy is about trust and confidence and clearly that’s something we couldn’t afford a few months back, oh last month actually (already feels like ages back). But.. since the coup-not-coup happened, people’s hopes have been somewhat restored and the government should take advantage of this.
A few weeks back, Techzim wrote on how the ‘new’ minister of Finance and Economic Planning admitted to how the then government was responsible for the economic situation we are in. He mentioned how they had churned more ‘money’ into the system by simply adding non-existent figures into the RTGS system. A “fiat of a fiat” is what it was described as.
As naive as this is going to sound, I actually think that’s a good sign. Coming out clean on such a big matter isn’t something you’d just randomly do. To me, that indicates the desire to change. It also exposed the (hopefully) old tactics which probably means that they now cannot be practiced again since they’re now out in the open. But then again, this is Zimbabwe we are talking about, obvious things aren’t so obvious…
Anyway,let’s hear your thoughts: what do you think? Should we drop the USD now and start working our own currency???
30 comments
no not yet. i dont think we are ready. we still having nightmares about quintillions
mnangagwa killed 2000 ndebele people so to be there as president is such a bad plan
We can only do that after our currency has something to back it… Heard the gold reserves were looted too lol
I think SADC should have its members Submit Gold (Or Diamonds) to a Regional Reserve and create a regional Currency
…sorry off topic
musaita dzungu papa.. there are key economic fundamentals that have to be addressed 1st… we have to get the production side right 1st… we can not have a stable currency wen we are not yet producing … as long as we are a net importer it wont work… so give these dudes a chance to address the industry and agric then we introduce our own currency at some point in the near future
The reasons about getting the production side right and having reserves are excuses which then fail to live up to the fact that the economy is still functioning with foreign currencies which are not able to prop it up or protect it.
not ready man
It doesn’t matter if its introduced now or later but what matters is how it is going to be managed by the monetary authorities. We have countries like Mozambique to follow. Introduce the Zimdollar but do not ban the use of US$. Scrap all bank charges to encourage depositing of cash into the bank. Introduce interest on running deposits in current accounts (as used to be the case with savings accounts in the 80s and early 90s.) Banks must rely on lending for income not current accounts. This economy lacks domestic credit i.e. banks are not lending, this must stop. Restore confidence in the banking sector. RBZ should not communicate with masses as regards its internal challenges. For example, they should never announce cash withdrawal limits to the public, It simply creates a run on deposits and cash crisis that we are in right now. RBZ is banks banker not a public bank, its activities should not be everyday news material. These things are not new at all in the banking sector, it used to be like that back then. Thats how this whole money situation can be managed. And last but not least the “printing” or “creating” of money by government, which used to happen a lot, to cover salaries and bonuses or any shortfalls must stop.
Title misleading I think
Good idea but not now… Maybe in few years when gvt has shown real intent and good policies…. Maybe it’s they good enough people will wrongly bring USD here
That title is discouraging AF
Mmmm headline yenyu iyi maku Luzaa Credibility
I THINK THIS ARTICLE LACKES KNOWLEDGE OF ECONOMICS FUNDAMENTALS. ANY CURRENCY IS HINGED ON GOLD RESERVES, WHICH WE DO NOT HAVE. ALL THE GOLD PRODUCED IS IMMEDIATELY SOLD TO SETTLE OUR CURRENT ACCOUNT AND THE GOVERNMENT DOES NOT HAVE MONEY TO BUILD RESERVES. THE ONLY HELP USA CAN GIVE IS A CHUNCK OF BULLION TO BACK UP THE NEW CURRENCY, THAT IS NOT HAPPENING SOON. ANY CURRENCY NOT BACKED UP BY GOLD IS BOND PAPER. USELESS AND IS TOILET PAPER OUTSIDE OUR BORDERS
Read this https://goo.gl/wKm3E9 before talking about gold backed currencies and reserves etc etc. That standard was abolished long ago.
Currency is no longer backed by gold, do your homework. In layman language, most currencies are backed by investor confidence in govt
Only after change of government. the current governnment needs an overhaul.
I dnt really nw how we gonna copy without
I said so, about time to don’t rally on foreign countries that didn’t help liberate you. Too much resentment.
toda rand isu….
Very possible if we are united with golden minds & not too partisan in everything. Everything should not be politics, politics, politics and change of government. The first thing is change of attitude from negative to positive of our + or – 15m pple. If we change gvt without changing our attitude as a nation, nothing changes coz that new gvt will have its enemies who’ll also kol 4 change of gvt, & it goes on & on. Let’s have faith in what we do. Faith move mountaints.
Would it really matter which currency we are using for the economy to perform? What we need is sustainable economic growth and politics /policies
Title indeed misleading, as was the headline in The Independent. U.S. government does not impose capital controls on its currency, meaning it will not stop another country from circulating or trading U.S. dollars. The goal should be a strong enough economy and healthy enough reserves to support our own currency – until that time our monetary tools are limited as we do not control the supply or relative price of the dollar.
The Title is misleading ,and it was Richard Nixon , who abolished the Gold backed currency in the 60s. There is no such thing world is using floating currency only. The Demand of Zim Currency will strengthen or weaken it or even stabilize it. We need to create demand for the new currency, sectors like Tourism, exports of agricultural and minerals will help. Introducing currency now no until there is fiscus discipline
I very much doubt the US embassy in Harare wud have suggested that…. Most probably in a few years time if and when our economy stabilises. But what has pissed me off how bob and his wife who had no respect for our country or 99% of us who are Zimbabweans are allowed to what the he’ll they like… flip overseas another 40 million drained as I he’ll doubt they paid for it with all their aids allowances….. there has to be a stop to this. He f…… us all up and we still allow him to get away milking our economy. We coz we still hve the same party who praise Bob as if he is god. No this is not fair. What a hell Christmas 2017 for most Zimbabweans STILL…..
It’s a way forward and with the right attitude it can be achieved after all that’s rebuilding meaning we are building something that has been there
It’s a way forward and with the right attitude it can be achieved after all that’s rebuilding meaning we are building something that has been there
Adoption of a weaker currency to the US would be a short term solution to kick start production since investing in Zim will be cheaper.
Title of the article very misleading, …the economic understanding depth of the writer is shocking!!!!!
Problem with a new currency is that all the negative perceptions of our government are reflected in its value. It is not really about production, it is about governance and the market’s (we are the market by the way) perceptions of it. Example, just recently the Rand strengthened against major currencies because Ramaphosa was elected as the new ANC president.
The Zim government, more specifically, ZanuPF has its work cut out to turn around the negative perceptions it has garnered over decades. Over 30 years in power and Zanu has made never been able to draft and implement a sucessfull economic policy. That right there is the elephant in the room. Seriously , what can they do now which they have failed to do in the past?
Pfidza has sharp mind, he knows our history well. Tell them more PIDZA. Hatidi Kukangawa chezuro ngehope.(Forgetting yesterday’s nightmare of bearer cheque, by one night sleep) Individuals used to open 6 or more months fixed deposits acc and withdraw upon maturity plus interest to buy a bicycle etc b4 early ’90s, but alas! its vice vesa even with USD. Spot on Pfidza. Tell the bornfrees. If this system of b4 early ’90s rolls again and guaranteed, then thumbs-up with zimdola.