Enemies Of Zimbabwe Dollar, Structured Currency - Prof Mugano

In an apparent response to Government spokesperson Nick Mangwana, who accused unnamed individuals of undermining Zimbabwe’s currency and sabotaging efforts to stabilize the economy, economist Professor Gift Mugano suggested that it is the government’s actions that undermine the Zim dollar.

Posting on X, Mangwana, who serves as the permanent secretary of the Ministry of Information, Publicity, and Broadcasting Services, stated that some citizens are on a “crusade” to undermine all government efforts aimed at stabilizing the economy. He said:

Why would anyone doggedly make it their mission to fight Zimbabwe’s currency? Why would they turn themselves into a crusader in an effort to sabotage all the endeavours to stabilize things in Zimbabwe? Rank Treachery.

In a separate post, Mugano asserted that excessive printing of money and the unresolved confidence crisis emanating from actions of monetary authorities are among the enemies of the Zimbabwe dollar and the yet-to-be-introduced structured currency. He said:

The enemies of our currency & the so-called structured currency are:

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1. Excessive printing of money & excess liquidity caused by command agriculture; wrong financing model on roads & key infrastructures;

2. A dominant informal sector which is governed by informal rules & has no regard for govt policies – the informal sector has its own governor, mattress bank, minister of finance, etc

3. devastating drought & subdued commodity prices which have a combined effect of reducing the availability of USD liquidity

4. unresolved confidence crisis caused by loss of capital/pensions/savings/insurance/investments as a result of incessant currency collapse & currency crisis

5. lack of policy clarity – our economic problem is centred around structural rigidities which require structural policies (industrial, trade and agricultural policies). We haven’t seen much activities & media coverage on these policies in the same way we have seen visibility & pronouncements on monetary & fiscal policies. In short, our structural policies are not up to scratch.

6. drought of production – the best way to defend our currency is to institute policy measures and conditions that promote a productive economy (e.g., sound structural policies, working markets, market-led economy, sound financial sector, stable political environment powered by rule of law, constitutionalism and strong institutions).

7. Broken politics – we have invested so much energy in disunity & hate speech instead of fostering peace, unity, tolerance and love. We are allergic to national dialogue, social contracts, divergent views, etc. Ironically, we expect to see flawless implementation of public policies and attainment of the desired economic goals when we are divided.

Structured currency = bond note, gold coins/gold token/ZiG. Bond note & ZiG were/are local currencies backed by USD & gold, respectively but failed dismally because of the reasons I mentioned above.

This is why I am convinced that a local currency or structured currency will always fail as long as the factors raised above are not adequately addressed.

Businessman Kuda Musasiwa characterised the structured currency as a “mubobobo” currency, referring to a traditional medicine acquired by men that allegedly enables them to rape women without any physical contact. He wrote:

I have never physically touched a $50 note in Zimbabwe. I’ve seen it on Twitter. I ain’t never seen a real gold coin from RBZ. I saw it on Twitter.

Not even when I jumped on a combi from Hatcliffe to Helensvale did I see anyone pay in a local note? I’m in tech and I have NEVER experienced a ZiG.

I tell you NOT one lie, PaDust in Hatcliffe, when we pick up our daily cash from the ladies who horder from the Fresh Farm every morning, not ONE has offered to pay in ZWLs in the whole of 2024 and we are now 4 months in.

I can admit that sometimes in the Trade centre some guys will offer to “swipe” for me when shopping … Offering a better “rate”. But my maths is bad and can’t be fucked most of the time to even bother.

Don’t even know how they work. 🤣These are fictional currencies. Like the one coming. How are our leaders so out of touch?

Mubobobo currencies.

More: Pindula News