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The Cost Of Social Media Fake News To The Economy Is “Horrendous” Says RBZ Governor, John Mangudya

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RBZ Governor, Dr John Mangudya

The current concern surrounding ‘fake news’ may be mostly centered on its influence on political outcomes, including elections; but there are also consequences for consumers and investors.

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This sentiment is shared by the Governor of the Reserve Bank of Zimbabwe, Dr. John Mangudya who is lamenting the negative impact of fake news on the economy. Unsuspecting people are being led to make decisions they would not have made had they known that whatever information they are using to make decisions is fake. Dr. John Mangudya said;

The cost of fake social media articles is horrendous in terms of economic, financial, social and political costs to the economy. The cost to the economy of such unfortunate messages far exceeds the explicit cost of around $800 per advert that we place in the media. Wrong decisions that people make due to fake news is beyond measure

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The Governor may have been saying this with reference to the recent fake article which said that the central bank was going to reintroduce a new currency last week. Yes, fake news has horrendous effects in the social and political sphere. But I wouldn’t go as far as to say the same (horrendous) in the financial or economic sphere.

The average consumer could be affected by the fake news since they make day to day decisions which are routine and hardly need too much consideration. However, in many ways, fake news has made consumers smarter. They are more skeptical of the reliability of the information they receive, especially online. Hence, they end up not making buying decisions based on fake news.

Also, I hardly think investors who usually commit a lot of money are hardly victims of fakes news as they have to exercise ‘extra due diligence’ before committing their money.

Financial gains through fake news

Sometimes fake news is intentional. This kind of news can get so much traffic it trends, and earn thousands in advertisement revenue. What’s worse, fake news is sneaked into our everyday lives with such subtlety most people don’t know it’s there. Adverts published by media outlets and social networks warn everyone to watch out for fake news, but when the mediums themselves are used to facilitate misleading information, things start to get confusing.

John MangudyaReserve Bank of Zimbabwe

John Panonetsa Mangudya is an economist and the current Reserve Bank of Zimbabwe governor. Mangudya, who sits on many local and international boards .He was made RBZ governor after the expiry of Gideon Gono's term in 2014. He had been CBZ Holdings Ltd Chief Executive... Read More About John Mangudya

The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About Reserve Bank of Zimbabwe


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6 thoughts on “The Cost Of Social Media Fake News To The Economy Is “Horrendous” Says RBZ Governor, John Mangudya

  1. Just like the bond notes! what was fake about that. Now it is all trading on the Black Market.

  2. Well of he so concerned…. Give us updates and counter these false accusations…. You say you not going to release USD and 3 weeks later make a u turn… Send like fake news is affecting you first

  3. Is social media doing more damage than poor dictated policies and failure to police unscrupulous activity in the banking sector and amongst citiziens? I doubt it

  4. The cost of bond notes to the economy is even more horrendous !!! Mangudya is the root cause of these problems. We had no problems with forex availability for 6 years from 2009 to 2015

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