Source: Let’s all have confidence in our local currency -Newsday Zimbabwe
SCEPTICISM still surrounds the introduction of our local currency, the Zimbabwe Gold (ZiG), as businesses and consumers are still trying to visualise the route the local currency will follow.
The situation has not been made easy lately because of the scarcity of the local currency due to limited money supply.
Since the introduction of the ZiG, I have not managed to see or feel the new coins and notes. I cannot access the ZiG as well.
Those who do not deal with plastic money like vendors, commuters are facing the biggest financial quagmire as change is difficult to find when they board buses.
People are forced to purchase unnecessary commodities such as sweets, biscuits, pens, pencils, chocolates merely because they cannot get change. Why does the Reserve Bank of Zimbabwe (RBZ) remain quiet when we are struggling?
The country has gone through cycles of currency changes since the year 2000 with many people having lost all their savings in the process.
RBZ governor John Mushayavanhu has a huge task ahead of him as he squares off with perennial economic saboteurs waiting to attack in a bid to manipulate the exchange rate to their advantage.
It is not a secret that many politicians are implicated in this dirty game and for long have been left to aggravate our suffering as a nation.
The Finance, Economic Development and Investment Promotion ministry was quick to realise the malfeasance by chronic money changers hence the gazetting of SI 81a of 2024 which came up with prohibitive measures against foreign currency trade, exchange rate manipulation and general financial transactions.
One of the most critical determinants of economic stability is the exchange rate and failure to stabilise that spells doom for everyone. A stable exchange rate determines interest rates, inflation, general trade, investment as there will be reduced exchange rate risk. Economic activity and balance of payments are affected by the exchange rate and that is why we are all praying for a stable ZiG.
There will be stability in the value of the currency which protects it from market fluctuations. It is undeniable that the country needs foreign investment for its growth hence the need to stabilise our own currency.
The ZiG demands a lot of discipline from everyone. All the stakeholders in the financial sector have a critical role to play if stability is to be achieved.
Government, businesses, consumers are key players who have the ultimate responsibility to drive the economy forward. The biggest test on the part of government is the acceptance of the ZiG in transactions such as import duty, passport processing and fuel purchasing. These three transactions are a litmus test for the desired confidence in the local currency and everyone will appreciate the strength of our local currency.
It should now be mandatory for all domestic payments to be made using our local currency. There should come a time when there will not be a scramble for the United States dollar like what happens in Tanzania, Zambia, Malawi, South Africa, Botswana and many other countries.
Why is it that our country is the only one that is struggling in southern Africa when it comes to currency issues yet it is the richest in terms of natural resources considering the availability of more than 30 precious minerals?
Why are we doubting our own currency? Is it because of disinformation and misinformation peddled against our currency? The country has many conspiracy theorists who take advantage of the ignorance of many of us and the falsehoods they spread are detrimental to economic development. It is time we had our own currency in this country and it is my prayer that everyone embraces it. We need to take pride in our own currency.
Johannes Marisa is a medical practitioner who is the current president of the Medical and Dental Private Practitioners Association of Zimbabwe
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