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Zim Dollar: To b
Business, Careers & Technology
Terence Zimwara
Debate on the
currency has inevitably
dominated business headlines
for the past year and looks to
remain the case for years to come.
The current wave of this debate was
prompted by the pronouncements by
Finance Minister, Patrick Chinamasa, and
pronouncements to the effect of blaming
dollarization for the economy’s woes.
While the minister’s report to
parliament centred on the cost structures
that emerged after 2009, at the heart of
the matter is the incapacitated state, a
of the economy because the country uses
other currencies and not its own.
With the central bank playing a
ceremonial role, the government has been
reduced to begging as its only means of
Since the demise of the Zim dollar back
in 2008, the country monetary policy
has made way to those countries whose
currencies it adopted, that is the United
States and South Africa.
Some
industrialists
have made a strong
case for a return to a locally
issued currency but just to underline the
greater part of the population remains
heavily opposed to this idea.
In an era of openness and pragmatism,
regular newspaper columnists have taken
the lead in singing a hymn against a Zim
dollar return. In fact this debate is quite
open in both state and privately owned
media.
The general consensus is that
government has to refrain from even
entertaining the idea of a Zim dollar
return and of course the reasons are
driven out of fear and not real economics.
However, this fear should be enough
to dissuade anyone contemplating on
bringing back the failed currency, it will
be rejected. It is also helpful to learn from
history what the talk of bringing the Zim
dollar has done to markets, the confusion
it has brought.
consistently tried to give positive signals
by announcing that the multiple currency
regime will stay in place until 2018.
Yet soon after elections last year, there
was a rumour mill that the incoming
government planned an immediate return
of the local dollar.
What followed was a frenzied
withdrawal of cash from banks by citizens
already seen a spike in such withdrawals
as corporates and individuals took a wait
and see approach.
The panic is motivated by past
experiences at the hands of the Zim
dollar, the disappeared bank balances and
the bank queues.
It is clear that Zimbabweans,
particularly this generation, this
generation that bore the brunt of the hyper-
relic, one that invokes memories of total
despair and helplessness.
It should then be crystal clear
to everyone especially Zim dollar
proponents, that the panic cash
withdrawals that often follow reports of
an imminent return of the Zim dollar, are
enough evidence that citizens still have
the body or the system that issues the
currency; consequently this means that
whatever sugar coating or name is given
to that currency, few people will have
Page 76 The Parade - Zimbabwe’s Most Read Lifestyle Magazine
August 2014