CONTROVERSIAL COMMENTS BY ZIMBABWE VICE-PRESIDENT STIR CONFUSION ABOUT BOND NOTES AND CURRENCY HISTORY

Vice-President Constantino Chiwenga recently caused a stir at the Zimbabwe International Trade Fair in Bulawayo. He made a wrong claim about Zimbabwe’s bond notes, saying they were from the colonial era under Ian Smith’s Unilateral Declaration of Independence. This is not true and shows a pattern of misleading statements by government officials about the country’s money policies.

The bond notes, introduced in 2016 by the late former president Robert Mugabe’s government, were meant to help a struggling economy with severe inflation and currency problems. Chiwenga’s claims are false because these bond notes were never part of Rhodesian money practices. They were a recent solution to Zimbabwe’s financial troubles.

This kind of misinformation is not just from the Vice-President. Chris Mutsvangwa, a Zanu PF spokesperson, said the new currency, Zimbabwe Gold (ZiG), was like using gold bullion as currency in the past. This is also not true. Zimbabwe has never used gold as a currency, though it has mined and traded gold for a long time.

The situation gets more confusing with Reserve Bank of Zimbabwe governor John Mushayavanhu. He said the ZiG currency came from talks with the World Bank, suggesting international support. He even said that criticizing ZiG was like criticizing the World Bank. This adds false legitimacy to the currency. In the past, the government also lied about bond notes being backed by a big loan from Afrexim Bank.

These wrong and confusing statements have hurt confidence in the ZiG before it could start properly. Zimbabwean officials’ panicky and mixed messages have made the market chaotic and uncertain.

To try and stabilize the ZiG, President Emmerson Mnangagwa and his team have used forceful methods. They claim that ZiG is backed by gold and foreign exchange reserves. But history shows that such tactics usually do not lead to long-term stability or confidence.

Zimbabwe’s money history is rich and complex, not as simple as the government says. During the colonial period, the country was part of the gold standard system where currencies were linked to gold. But during Rhodesia’s era, the British Pound Sterling was the legal tender, not gold. After independence, Zimbabwe used different currencies but never officially used gold as money.

In 1970, Rhodesia introduced its own dollar, which was equal to the British pound until Rhodesia ended in 1980. This shows a history of wanting a stable and credible currency, very different from the current situation with ZiG.

The misleading statements by officials do not just twist Zimbabwe’s money history. They also hurt new economic plans by spreading misinformation and distrust. People’s confidence in a currency depends on believing in its value and the economic basics behind it.

Experts like Dr. Tinashe Nyamunda, an Economic and Social History lecturer at the University of Glasgow, have pointed out these errors. Dr. Nyamunda’s work explains Zimbabwe’s money history clearly. He debunks myths and clarifies that while gold was important, it was never the main part of the economy.

As Zimbabwe faces another money change, it is crucial for leaders to be honest and clear in their policies. The country’s economic recovery and stability may depend on the government’s ability to build trust through truth and accuracy in public talks, not through false history and force. Only with clear and truthful communication can Zimbabwe hope to restore confidence in its currency and achieve a stable economic future.