Sidumisile Mabena
Sikhulekelani Moyo, [email protected]
THE business community has welcomed the decision by the Reserve Bank of Zimbabwe (RBZ) to introduce new ZWG notes, saying this should therefore be understood as part of a broader, deliberate, and carefully managed process to consolidate and strengthen the monetary system.
This comes after the Central Bank has announced that there will be the rollout of new ZWG noted towards the end of this first quarter.
The introduction of new ZWG notes comes at a time when the monetary authority is working on improving confidence in local currency, with the new notes going to have enhanced quality and features.
Responding to questions sent to him by Zimpapers Business Hub, former Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Chapter vice president and a Bulawayo businessman Mr Louis Herbst, said for Zimbabwe to achieve lasting economic stability and sustainable growth, it must ultimately operate with a credible and trusted national currency.
He said no economy can function well while relying on foreign currencies for its core transactions.
“The introduction of new ZWG notes should therefore be understood as part of a broader, deliberate and carefully managed process toward consolidating and strengthening our monetary system and, in time, achieving a viable single-currency framework,” said Mr Herbst.
“Importantly, this step is being taken in an environment that is very different from the past. To date, the Government under the Second Republic has demonstrated greater fiscal discipline, an increased focus on macroeconomic stability, and a more structured and transparent approach to economic management, which has created the necessary conditions for this kind of progress.
“At the same time, it is critical that as a society we allow this transition to proceed in an orderly and calm manner. There is no economic or practical reason for panic, speculation, or a rush to change behaviour in a way that disrupts normal business activity.”
RBZ has assured the public that there is no need to rush to exchange existing currency notes ahead of the introduction of new ZWG banknotes, saying the transition will be smooth and carefully managed.
The central bank is taking a measured approach to the rollout to maintain stability and avoid unnecessary panic in the market.
Mr Herbts said currency transitions succeed or fail largely on confidence and public behaviour, saying that unnecessary hype or alarmism can itself create instability where none is warranted.
“The correct approach for both businesses and consumers is therefore to treat this period as business as usual, to continue trading, pricing, contracting and planning in a normal and rational manner while the authorities manage the technical aspects of the changeover,” he added.
Online Reporter