ZIMBABWE’S NEW CURRENCY PLAN CONFUSED BY FALSE HISTORICAL CLAIMS

At the Zimbabwe International Trade Fair in Bulawayo, Vice-President Constantino Chiwenga made a statement that left many people confused. He said that the bond notes, which were recently removed from use because their value dropped due to inflation, were a colonial leftover from the Rhodesian era under Ian Smith. This, however, is not true. The bond notes were introduced by Zimbabwe in 2016 during the time of the late President Robert Mugabe.

This statement by the Vice-President was just one example of how Zimbabwe’s complicated money history is sometimes misused to push incorrect ideas. As Zimbabwe tries to solve its problems with money, a new type of currency, called Zimbabwe Gold (ZiG), is being introduced. But like before, there are already many confusing and wrong statements from the government about it.

For example, Zanu PF spokesperson Chris Mutsvangwa recently said that ZiG was a return to the old way of using gold as money in Zimbabwe. However, there is no proof that Zimbabwe ever used gold as money in the past. He was wrong. Also, the Reserve Bank of Zimbabwe governor, John Mushayavanhu, added more confusion by saying that ZiG came from advice given by the World Bank. He even suggested that anyone who criticized ZiG was also criticizing the World Bank. But this statement is also not true.

These wrong statements have made things more difficult, and many people have lost trust in the ZiG even before it is properly introduced. The new currency is also facing the same problems as the bond notes, which were said to be supported by a large loan that never really existed.

Zimbabwe’s history with gold is important, but not as money. The country has always traded gold as a product, not as a currency. During the colonial period, Zimbabwe was part of the gold standard, but gold was never the main support for the economy. Agriculture has always been the most important part of the economy, not gold.

The idea that Zimbabwe’s economy was always based on gold is not just wrong, it is also an oversimplification. The country’s money history is much more complicated and involves many different types of currencies over the years. This includes the British South Africa Company introducing Sterling-based money in Mashonaland, and later the change to the Rhodesian dollar, and then the Zimbabwe dollar.

The use of wrong historical facts by politicians shows how desperate the current government, under President Emmerson Mnangagwa, is to fix the economy with the introduction of ZiG. The government says ZiG is backed by gold and foreign currency reserves. However, these claims are being made while the government also uses more forceful methods to try and control the economy. In the past, such methods have not worked.

Moreover, the introduction of the ZiG follows the same pattern seen with other forms of money, like traveler’s cheques and bearer cheques, which were used during times of money shortages. These solutions have not been able to provide long-term trust or stability. This shows a bigger problem, which is that Zimbabwe keeps having economic crises, and the government struggles to build trust in its money system.

Zimbabwe’s money history is not just about gold and other forms of money. It also reflects the country’s many difficult economic decisions and the ongoing challenges of creating a stable and trusted money system. As the country is about to start using the ZiG, it is important that officials give correct information and avoid making wrong historical claims, which only make things worse.

Dr. Tinashe Nyamunda, a lecturer in Economic and Social History at the University of Glasgow, has studied Zimbabwe’s money history. In his article, “Money in Zimbabwean History: A Concise Currency Timeline,” he shows the need for the government to understand the true history of Zimbabwe’s money. He says that understanding the real facts is important if Zimbabwe wants to make better decisions about money. Only by sharing accurate information can the government start to win back people’s trust and bring stability to the economy.