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Business Correspondent
Since the start of the year, debate has been raging particularly in the public media between those that advocate for the immediate return of the local currency and those arguing against its rushed return. The debate has often degenerated into name calling and less educated arguments yet the status quo remains. Government’s plan or lack thereof on the roadmap towards the return to a fully fledged Zimdollar has not helped matters.
While Government officials have 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 suffice to say prior to elections, banks had already seen a spike in such withdrawals as corporates and individuals took a wait and see approach.
It is, however, saddening to note that those calling for an immediate return of the Zimdollar fail to grasp what was the meaning of such events.
It is clear that Zimbabweans particularly this generation, this generation that bore the brunt of the hyperinflation, the Zimdollar is an unwelcome relic, one that invokes memories of total despair and helplessness.
It should be crystal clear to everyone especially Zimdollar proponents, that the panic cash withdrawals that often follow reports of an imminent return of the local unit, are enough evidence that citizens still have no confidence in this currency.
Worse, people have no confidence in 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 confidence in it.
Currencies are about confidence, without confidence a currency will not stand.
History of how money evolved to what it is now can help those who advocate for the Zimdollar to appreciate complexities involved in issuing currency.
However, it is even more complicated to reintroduce a currency to the same generation, a generation that deserted an earlier currency- the Zimdollar.
A few years before the disappearance of the Zimdollar, international financial institutions were already not accepting the Zimdollar because to them the currency had collapsed.
It took a few more years before the rest of the country rejected the Zimdollar favouring the US dollar and the South African rand.
It is a fact the Government only formally adopted the use of multiple currencies in February 2009, yet by mid 2008 the Zimdollar was no longer accepted as legal tender by a large majority of the population.
Carefully analysing the chain of events leading to the eventual dollarisation of the economy will show that Government did not elect to abandon the Zimdollar. It was the rejection of the Zimdollar by the masses that forced Government to adopt multiple currencies.
Put simply, the Government endorsed the currencies that Zimbabweans had confidence in as it abandoned its own.
There various theories on what exactly caused the hyperinflation and the spectacular collapse of the Zimdollar, however it is not the brief of this piece.
In this article I am trying to highlight that no amount emotions or parroting will change the perceptions about the Zimdollar by those that suffered heavy losses at the hands of this currency.
Zimbabwe’s economy has faced enormous challenges which have ranged from large scale corruption to financial sanctions and that is well documented. Perhaps what is not well documented are the sentiments or concerns of the ordinary people, in this case users of the Zimdollar.
It is somewhat surprising there is no one who has even carried a credible survey to establish the thoughts of Zimbabweans on returning the Zimdollar. Proponents of its return are relying on statements that are coming from selfish business leaders and ignorant newspaper columnists.
They are not bothering to hear the voice of the new tobacco farmer in Mount Darwin, the artisanal miners in Shurugwi or the civil servants for that matter.
They have not bothered to ask an old woman in the rural areas who lost everything when she sold her prized bull in Zimdollar only to be told the money was worthless a few weeks later.
If all those wishing for the immediate return of the Zimdollar are genuine, they should get a buy in from local people instead of solely relying on experiences of other countries. The dynamics of the Zimbabwean economy are very different from those of other countries and besides Zimbabweans are very much willing to be heard on this particular topic.
Attempting to influence Government into making a major policy change based simply on rhetoric smacks of deceit and lack of real patriotism.
The current Finance Minister Patrick Chinamasa, who has repeatedly said the return of the Zimdollar was not on the cards, once remarked that it will require painful and genuine effort to return the economy back to its former status.
By advocating for the simple printing of the Zimdollar to escape the current liquidity problems, it means some public opinion leaders are still failing to grasp what the exchequer chief was really trying to say.
The Zimbabwean economy faces extra ordinary challenges and with a few wealthy countries willing to help. A painful next few years is inevitable and intelligent people should be thinking on how best we can revive the economy in such circumstances.
More importantly they should even seek counsel from many who are less educated but who have much to say about this. Perhaps that is the only way a rich country like Zimbabwe can remove itself from its current quagmire.
Online Reporter