Zimbabwean News You Can Trust
The Zimbabwe Council of Churches (ZCC) has held its first quarter economic review dialogue, engaging renowned economists and residents’ representative organizations, to discuss ways in which Zimbabweans can adopt the recently launched Zimbabwe Gold currency (ZiG).
Since its launch earlier this month, ZiG has faced criticism from Economic experts and intellectuals, with the former Finance Minister during the Government of National Unity (GNU) Tendai Biti insisting that the currency was destined to fail, just like previous currencies that collapsed.
However, RBZ governor Jonh Mushayavanhu has remained confident with the new currency, stressing that it will “silence all the doubting Thomases” who are questioning its credibility.
Mushayavanhu also stated the new currency is backed by 2.6 tonnes of gold, as well as 100M United States Dollars.
But speaking during the ZCC economic review dialogue held this week Tuesday, renowned economist, Professor Gift Mugano, said the ZiG was going to fail because the government failed to consult widely before launching the it.
“There was a need to consult other opposition political parties, because this is a currency to be used by everyone. It was prudent to consult those in the business sector, but the government failed to do that, so it’s difficult to expect any miracle from ZiG,” explained Mugano.
Director of Labour and Economic Development Research Institute of Zimbabwe (LEDRIZ), Dr. Godfrey Kanyenze, told journalists that introducing ZiG was okay, but the problem is to change the lack of trust and confidence from the business community and the general populace.
He said, “the issue is not so much about ZiG. The issue is so much about trust, lack of confidence in a local currency. Mr. Mugano highlighted there isn’t real demand for the local currency. People don’t like it.”
Harare Residents Trust (HRT) leader, Precious Shumba, also waded on the new currency, blaming the government, insisting that its policies are the real hinderance to socio-political development in the country.
“ZiG is not the solution. The solution is the government’s attitude towards public expenditures. Government is extravagant, and that is the problem,” he added.
According to the new RBZ governor, John Mushayavanhu, ZiG notes will start to circulate on April 30, 2024. The ZiG notes, which will circulate, consist of 1, 2, 5, 10, 20, 50, 100, 200 denominations.
The Zimbabwe Republic Police (ZRP) has launched a blitz against parallel market money changers who the authorities accuse of “manipulating the exchange rate.”
The ZCC’s economic dialogue was meant to come up with positive policy propositions that would be proposed to Government to ensure that they are considered as the country plots its way out of economy malaise. The event also touched on the mining, health, education and social protection of Zimbabweans.
