Spare us the Zimbabwe dollar scare

via NewsDay Editorial: Spare us the Zimbabwe dollar scare November 28, 2013 in Editorials, Opinion

The current crisis in the banking sector where people are failing to withdraw their money is a pointer to another economic crisis in the making. There is no better symptom of economic collapse than the failure by banks to provide cash to depositors.

Zimbabweans would not have forgotten that cash shortage was the prelude to the economic disaster of that forgettable period climaxing in 2007-8. Not even the shortest of memories would forget how people had to carry blankets to spend nights at bank queues in order to withdraw money that would become valueless upon receiving it after a 48-hour wait.

That is despite the fact that we were then able to print our own money — as much as the paper and inks at Fidelity Printers could print. When government could no longer print the real currency — albeit valueless — a decision was made to print and issue out bearer cheques which then became the courier of what was to become a world-attraction denomination — the trillion dollar bill.

Now, we are walking the same road once again. And the fear is that authorities will be unable to resist the growing temptation to revert to the Zimdollar, seeing as there is nothing they can do to increase the supply of the increasingly dwindling US dollar supply.

There has been agitation from some quarters within the government and ruling party for the introduction of the Zimdollar and the cash crisis could seem to vindicate the reasoning for this kind of thinking — but we must urge restraint and caution.

Any attempt to go back to an unsupported Zimdollar just for the sake of making available valueless paper money, will sink this country irretrievably. The solution to the kind of problem we have can never be as simple as printing paper in the hope of transforming it into money.

That is not a solution, but a means to a deeper grave. Our problems are a combination of politics, economics and discipline. Our economic policies — most of which are warped – are instructed by political decisions. Economic discipline too, is virtually non-existent — again because of our politics.

These are the issues that the people that rule this country ought to address without fear or favour. There is no doubt we are not able to access foreign direct investment because of policies that are self-defeating. There is no doubt again that we have allowed massive looting of national resources that ought to have propped up the economy — owing to a virtual absence of discipline.

As a result, we have in Zimbabwe individuals that have more money than Patrick Chinamasa would need to present the usual hunter-gatherer budget. We have individuals that can buy whole cities if they wished to — and avail more instant cash than most banks are able to in a week!

But the source of that money cannot be questioned because the hands of those with the authority to do so are dirty too. So they lie about lack of evidence to prosecute.

These are the same individuals who will want to see the return of Zimdollar, so they can multiply their filthy wealth — while the people wallow in abject misery!

But again, they must be reminded that survival instinct has the last word!

 

COMMENTS

WORDPRESS: 14
  • comment-avatar
    Johnny k 8 years ago

    ZANU Chefs along with their Chinese, Indian and Malaisian diamond barons could get this country out of financial trouble in a heartbeat. BUT!! they would be exposed for the money that they stole.

  • comment-avatar

    Look. Listen. Four months ago I predicted that gonodollars would be back with vengeance. Reason? Zanupf can’t print us dollars Rands. Even the Chinese yuan renimbi inappropriate for mugabeland as it is not free floating in global financial trade and is artificially pegged to suit chinas economy..there is not even a single property economist in zanupf

  • comment-avatar
    MURIMI WANHASI 8 years ago

    Oh please spare us.The return of the zimdollar is just a wish for the nappy cleaning “diaspora”

    • comment-avatar
      zimbo 8 years ago

      Nappy cleaning diaspora?Right now your minister of finance is planning to “float government bonds” to raise money from the diaspora.talk about biting the hand that feeds you.

      Oh and by the way,you know what he can do with his bonds!

  • comment-avatar
    MURIMI WANHASI 8 years ago

    U r just wishing for the days when u could send 20 pounds,vanhu vototanga kuvaka imba
    The question is will u support thoz bonds,or u r just happy to laugh @ yourselves and criticize…self depreciating,low esteemed people is what we have become.

    • comment-avatar
      Rudadiso 8 years ago

      Murimi wanhasi, name one person in the diaspora who expressed the desire for the return of the zim dollar.

      Your name seems to imply you are one of the new farmers. When will you start to grow adequate food so we stop buying from the very same farmers we displaced?

  • comment-avatar
    MURIMI WANHASI 8 years ago

    Ruddie,if I can call u that,the coming of the multi currency regime basically disempowered most of the diaspora.
    Come on,its an open secret.What motivated people to lie their way past Heathrow?forex.Now why should I waste money buyin an air ticket to London,where once in a while,u r always painfully reminded kuti “kuno hakuzi kwako”
    Coming to the food situation.Realize that we r movin towards mining as the major industry in Zim,so just like Botswana,we can afford to buy our own food.Meanwhile our new farmers are steadly upping production.
    Don’t worry hakuna nzara kuno

    • comment-avatar
      COMRADE G 8 years ago

      You are delusional. Your problem is that you have a typical uneducated person’s mind who thinks that you are better if you are slightly better than the other person. If you have lived in an abnormal situation for a long time, you think it is normal to struggle to get money from the bank because it makes you think that you are better than the people in the diaspora. The actual fact is that people in Zimbabwe are generally a low standard life, look at everything: salaries, health facilities, education, employment and many other things. As for you, you just think you are better. COME UP WITH SOLUTIONS THAN TO THINK YOU ARE BETTER THAN THE DIASPORA WHEN YOU MAYBE JUST BETTER THAN YOUR RELATIVE. WAKE UP

    • comment-avatar
      Zumba 8 years ago

      Oh Murimi – Another Zanu brainwashed soul ! You must be sitting comfortably on the government payroll somewhere or still enjoying the ill gotten gains from the farm you looted .
      The money and Zanu support will run out soon even for you my friend . Who are you going to turn to then ? By the time you realize you have backed the wrong horse & your poisoned mind was led astray – it will be far too late .

  • comment-avatar
    munzwa 8 years ago

    A good article and yes where are the zanu chefs and their local investment?

  • comment-avatar
    MURIMI WANHASI 8 years ago

    Comrade G,relax.Being highly educated is an advantage,but not the only requirement of a sound mind.Im sure u r more educated than even your foreign bosses.
    But the advice I can give is,instead of being negative all the time,look for whats good and use it.

    • comment-avatar
      Rudadiso 8 years ago

      Indeed Murimi, education is indeed the only requirement for one to succeed. Mugabe has 6 degrees, evidently more educated than his masters, the Chinese. Look at how he is content to import zhingzhongs and allow the Chinese to even build on Harare’s wetlands. Now, when the Chinese visit Zimbabwe, where other countries actually have designated points at airports for their own nationals, we get shunted aside to give way to the Chinese to be served before anyone else.

      Indeed, you are spot on, education has, sadly, not helped our President and by extension, the people of Zim.

  • comment-avatar

    There are different personalities and each person will contribute based on what they hold dear to thier heart or better who they are. Murimi I worked at Gomo as a doctor and had to leave because I could prescribe drug XYZ but the patient could not afford it. The question for me is why? sanctions or no sanctions health care should be quality. I lost a sister in a car accident and the reason was simple, the medical response team did not arrive in time and all i could do was try prolong her (at least she died in my arms). Now for me I cannot stand the current enviroment because many people are dying due to poor policies, poor planning and poor equipment.

    The facts on the ground are clear Sir, there is no electricity, no clean safe drinking water, poor health system. That is the truth. Now if you then calculate the man hours (time is precious) spent by people being unproductive, you understand its only a matter of time before the truth hits you between the eyeballs.

    Question to ponder: if you got bitten by a snake, which clinic has anti-venom to cure you? how long will it take for the ambulance to reach you?, if you got into an accident going to your farm, how long will it take for the medical response team to attend to you?

  • comment-avatar
    MURIMI WANHASI 8 years ago

    USD sorry to hear abt yo sis.
    You mention some logical and thought provoking issues,but hey…I guess its just more risky(i.t.o essential services) to be here these days.We will pull thru,but will nid you guys to come back later