VICE-PRESIDENT CHIWENGA CAUGHT IN BOND NOTE LIE AT ZIMBABWE TRADE FAIR

At the Zimbabwe International Trade Fair in Bulawayo, Vice-President Constantino Chiwenga misled the nation about the origins of the recently abandoned bond notes. He incorrectly claimed that these notes were a colonial-era initiative from Ian Smith’s time. In reality, bond notes were a modern attempt to stabilize Zimbabwe’s troubled economy, but they failed due to high inflation and exchange rate problems, leading to their quick withdrawal.

Chiwenga wrongly linked the bond notes to the Unilateral Declaration of Independence period. This misinformation adds to the confusion and mistrust among the public, especially as the government rolls out a new currency, the Zimbabwe Gold, or ZiG.

The introduction of ZiG has been troubled by conflicting statements from officials, which undermines confidence in the new currency. For example, Zanu PF spokesperson Chris Mutsvangwa wrongly described ZiG as a gold currency, suggesting a historical precedent where Zimbabwe used gold as money. Additionally, the Reserve Bank of Zimbabwe governor John Mushayavanhu claimed that ZiG was developed with the World Bank’s help and that criticism of ZiG was like criticizing the World Bank. He also admitted that previous claims about the bond notes being backed by a US$200 million loan from Afrexim Bank were false.

These false statements have damaged the credibility of ZiG, reducing public trust. The government’s attempts to stabilize the currency through forceful measures have also not been effective. Despite claims of substantial gold and foreign exchange reserves, these strategies have not yet shown results.

Historically, Zimbabwe has a rich history of gold mining and trading but has never used gold as its sole currency. The myth spread by officials that gold was the economic anchor of Zimbabwe is not true. Agriculture has always been the cornerstone of Zimbabwe’s economy, not gold. While Zimbabwe traded gold during colonial times, it never adopted gold as its currency.

Officials have often oversimplified or distorted Zimbabwe’s monetary history. Dr. Tinashe Nyamunda, a lecturer in Economic and Social History at the University of Glasgow, provides a more accurate account. Zimbabwe’s monetary systems have evolved over time. During the colonial period, the country used Sterling, and later introduced the Rhodesian dollar, which was on par with the British pound until Zimbabwe’s independence in 1980. The Rhodesian dollar was introduced shortly before Rhodesia became a republic in 1970, primarily due to political circumstances rather than economic stability.

As Zimbabwe faces another economic challenge with the introduction of ZiG, it is important to address these historical inaccuracies and misrepresentations that prevent a true understanding and trust among the public. The ongoing economic instability, fueled by misleading statements and a lack of clear policies, continues to challenge Zimbabwe’s financial system.

In conclusion, the success of new currencies like ZiG will depend on honest and clear communication from government officials. Zimbabwe must correct the narrative around its monetary history to restore faith in the systems that govern the nation’s economy. Accurate information is not just about setting historical records straight but about building trust among the people.