By Tito Malowe in Bulawayo
Zimbabwe’s currency challenges have persisted even after Professor of Economics Mthuli Ncube promised to make it his number one priority upon his appointment in 2018. The situation is so dire that pessimists have dubbed the country as being on autopilot as far as currency issues are concerned, with street economists ruling the roost over treasury chiefs.
The liquidity crunch in Zimbabwe is deepening, and the economy’s embrace of a multi-currency system, mainly comprising the US dollar and the rand, has rendered the year-old ZiG functional to some extent. It is clearly struggling to hold fort as most business choose “good money”.
Yours truly currently attending the Zimbabwe International Trade Fair (ZITF), and what I witnessed is truly shocking. The ZiG hard cash, which I withdrew from my bank for my upkeep, has been rendered useless, as almost all service providers are rejecting it except for a few big supermarkets. From bars, hardware stores, restaurants, boutiques, to street vendors, the ZiG is unacceptable.
The transport sector here in Bulawayo has come up with a solution to do away with the ZiG, once again proving the power of street economists.
They have designed a 2cm square cardboard box, neatly laminated, which I believe was designed in a backyard, but carries a face value of 10 rand to deal with the issue of change. The cardboard box designed by street economists has value and carries the confidence of commuters in Bulawayo.
According to one Bulawayo based economic analyst, “Lack of confidence and mistrust between the banking public and government has led to currency failures. ”
Renowned economist Tony Hawkins says “What else is the ZiG used for except for arbitrage opportunities and to pay civil servants?”
“I can’t see the ZiG surviving that long; history has shown that every new currency in Zimbabwe has a shorter lifespan,” he added.
