Top lawyer Fadzayi Mahere has raised concerns over the Government’s plans to introduce a “structured currency.”
She argues that the lack of public education and the absence of a legal framework pose significant challenges to its implementation.
In February, President Emmerson Mnangagwa announced that the Government was actively working on a structured currency as part of their efforts to enhance currency and economic stability.
Reports indicate that the launch of this structured currency is imminent, coinciding with the appointment of John Mushayavanhu as the new Reserve Bank of Zimbabwe (RBZ) governor.
Fadzayi Mahere, sharing her thoughts on social media, advises the public to exercise caution. She points out that previous currency introductions in recent years have all faced challenges and ultimately failed. She said:
Rule number one, if they mention anything to do with “1:1 gedye”, know we are heading for disaster. Last time they said that we ended up at 1:42000.
Rule number two, if they mention anything to do with “gold backing”, know it’s a scam. What happened to the gold-backed Ziggy jiggy? Did it stabilize the economy?
Rule number three, no legal framework, no legal tender. You don’t “launch” a currency like you’re launching a music album.
It is called “legal tender” for a reason. It must have the force of law. You can’t roll out something as important as money without a legal statute.
Rule number four, why the ambush? Why not give people notice of what you’re trying to do so you calm suspicion?
They have a knack for taking an economic idea and mangling it so it implodes – look no further than the forex auction that wasn’t an auction.
How many times do we need to learn the lesson that command economics does not work?
Bulawayo Mayor David Coltart also warned that the proposed “structured currency” will face challenges unless the institutions overseeing its introduction and management regain public trust. He said:
I have noted statements made recently that the current government intends to introduce a new currency this week with some alarm.
The solution to hyperinflation and a weakening currency does not lie in replacing it with a new currency.
The reason our present currency has performed so badly is that people DO NOT TRUST the institution responsible for regulating it.
The most important criterion in the running of any central bank is TRUST. Until TRUST is restored this new currency is doomed to fail as well.
TRUST is only created when those running the central bank are recognized professionals who have been appointed because of their integrity and demonstrable skills, not who they know.
TRUST is only created when there is total transparency and the central bank is demonstrably being run for the benefit of all, not just a small ruling clique.
In recent years, the government has introduced several currencies that include Bearer Cheques, Traveller’s Cheques, Agro-Cheques, Bond Coins, Bond Notes, RTGS, Zim Dollars, Nostro, Gold Token and ZiG.
