Chronicle Editor
Our economy has suffered bouts of currency challenges over the past 24 years. That was due to a range of reasons among them Western sanctions, droughts, gaps in policy implementation and outright indiscipline by businesses and some ordinary people. As a result, the Government dropped the Zimbabwe dollar altogether in 2009 and allowed a basket of multiple foreign currencies to circulate.
That policy move stabilised the economy on one hand, yet on the other, hamstrung it, for no economy can grow with no national currency. That is why as soon as it came to power in 2017, the Second Republic made it clear that it would re-introduce the local note. That commitment led to the re-introduction of the Zimbabwe dollar in 2019.
We all celebrated the return of the national currency but it soon struggled. The master stroke came in April when the Government introduced the Zimbabwe Gold (ZiG). The gold-backed tender has held its own at around 13.5 against the US$ since then, thanks to judicious policy implementation. The market has basically welcomed it.
However, as we wrote yesterday, there are some bad apples that think that the robust law enforcement of the immediate post-ZiG introduction phase is over. FMG Wholesalers, Royal Sunflower, China shops and other traders in Bulawayo were exposed for only accepting US$ or the Rand. If anyone asks the shops concerned to pay in ZiG, they get silly excuses such as to say that their suppliers don’t take the local currency or that their swipe machines are offline.
Those that are doing this know that what they are doing is wrong and are committing a crime punishable by withdrawal of trading licences and or arrest of the owners of the businesses. We demand that these criminal entities masquerading as legitimate businesses undermining their national currency stop what they are doing.
There is absolutely no reason for them to shun the ZiG because it is stable thus no businesses can incur any exchange rate losses if they use it.
The International Monetary Fund (IMF) has backed the local currency. If an authority of the IMF standing sees value in our national currency, who are China shops, who is FMG Wholesalers, who is Royal Sunflower to begin to think that the ZiG is not worth transacting in?
The Government through the police, the Reserve Bank of Zimbabwe’s Financial Intelligence Unit and other law enforcement agencies must keep the whip swinging up in the air, cracking it when necessary, so that the undisciplined don’t get the wrong idea that they can do whatever they please. The ZiG is our currency together, the law says we are in a multiple currency system thus no business can decide to transact in this currency and not that one.
Online Reporter