Special coins the way to go

Shame Isaki
THE announcement by Reserve Bank of Zimbabwe Governor Dr John Mangundya, on his Mid-Term Monetary Policy review that he intends to import and introduce special coins whose value will be at par with the US cents by December 2014 is a welcome development to the nation.

These special coins will be in 1c, 5c, 10c, 20c and 50c denominations and to compliment them will be the Rand coins of 10c, 20c, 50c, R1, R2 and R5 denominations.  The announcement is the first of its kind since the adoption of the multi-currency regime by the Zimbabwean Government in 2009 and it surely marks the beginning of a new era in our economy.

This move also draws a line between the Dr Gono era and the new era superintended by Dr Mangundya.  I don’t intend to compare the two because their terms of reference are quite parallel though they both shared the same title.
Dr Gono presided over the RBZ at a time when the economy was descending a steep cliff and everything about Zimbabwe was under threat. The Zim-dollar was losing its value with no solution in sight and the nation was becoming restless. Basic commodities were not available, industry was shutting down because it could not keep pace with the rampaging inflation and the West’s hostile governments were celebrating that finally the chickens had come home to roost for Zimbabwe.

So for Dr Gono his role at RBZ became expanded to the extent of him playing the RBZ Governor, ‘Finance Minister’, ‘Government spokesman’ and Presidential advisor. The man had to make sure that the country survived. It was now a question of survival more than business acumen. It was a question of creativity more than ethics and I think in this regard the man delivered because up to now everyone is still surprised that we survived that terrible period. God is great. Now enter the multi-currency regime. The multi-currency system, while it was politically approved to be the way to go for the foreseeable future it has not been formally adopted, in other words there have been no formal and legal engagements with the owners of the currencies we are using to regularise its use in Zimbabwe and thereby getting adequate supplies of the same.

Understandably this has been as a result of several factors among them political, given that the multi-currency regime also came at a time when the Inclusive Government was being instituted. Also being a nation that was used to having its own currency obviously the idea of using other nations’ currency is a bitter pill to swallow because it is an issue of national pride at stake here but realities on the ground dictate otherwise.

Now that the Inclusive Government has gone with its hackling and stalling of important national programmes, it seems common business sense is now prevailing and it is important to applaud the Zanu-PF Government for swallowing its pride because everyone’s fear was that the unthinkable would be announced especially the untimely discontinuing of the multi-currency regime. However, these fears have been categorically allayed by his Excellency, President Mugabe and the Finance Minister, Cde Patrick Chinamasa.

This, however, does not mean that the idea of the return of our own currency has been permanently shelved for various reasons.

I believe that Dr Mangundya’s task is relatively better than his predecessor’s though there is still much to be done because the generality of Zimbabweans are still groaning in poverty and the groaning is getting louder by the day.

Dr Mangudya’s move to formalise the introduction of foreign currency, through coins, is a step in the right direction because it will in a way address the liquidity crisis though in a very small way.

Secondly like he rightly pointed out, this will address the issue of change and stop the practice of rounded-up prices.  In a sense, it is a step towards giving the foreign currency its true value and ensuring that Zimbabweans get value for money.

I don’t see anything stopping us from going further to also formalise the use of the important foreign notes because after all life and governance are about accepting necessary change even though most of the time it’s not comfortable.

For skeptics, I know this move by RBZ might mean nothing to them and I understand them because people’s suffering has gone on for a relatively long time so much so that some people don’t believe things can change for the better. President Mugabe declared that the economy was on the rebound and the private Press had a ‘field day’ discrediting his remarks, but I boldly share his sentiments, things are changing for the best. Don’t allow anger, lack of forgiveness, bitterness and unbelief to contaminate your faith and blur your vision. Zimbabwe is bouncing back and rising to levels we have never been to.  I believe. Let’s believe together.

Dr John Mangundya has the best chance to prove his mettle by crafting a monetary policy that will not only save our economy from collapse but ensure its resurgence which will then see us compete globally. It seems there is political will to aid his cause and that is very important for the successful implementation of his ideas and skills.

His work will also be made slightly easier by the shedding off of some of the none-core activities that were bedevilling the lender of last-resort action given that the government has entered into special capital intensive infrastructural development agreements with the Chinese government whose funding, depending on viability, will be done by the Chinese government and Chinese banks. We are heading somewhere.

• Shame Isaki is a socio-political commentator, business consultant and preacher.  For feedback call 020-68818/0773 018 662.  Email: [email protected].