AMHVoices:We need solutions, not protests

By The NewsDay | May. 11, 2016 | 3 Min read

In the case of Zimbabwe, the USD has become more of a commodity, a safe haven currency or asset than a medium of exchange.

The current shortage of cash in our economy impacts negatively on our national integrity, as well as blurring the prospects of recovery. In the face of these hurdles, it is worth mentioning that Reserve Bank of Zimbabwe (RBZ) governor Dr John Mangudya is working to alleviate this by introducing a vast array of functional measures.

BY SPARKLEFORD MASIYAMBIRI,OUR READER

“Planned mass protests against the introduction of bond notes are meant to derail plans by the central bank to stabilise the economy”

Alongside his efforts, it is imperative that we also play our own part as citizens living in the same economic environment to prop up this public interest. There is no doubt that public goodwill from all stakeholders who include traders, businesses, farmers, government, non-governmental organisations, political entities, workers and vendors, is an essential component which can contribute meaningfully in resolving this predicament gripping the nation at this point in time.

RBZ attributes this plight to a number of intertwined factors that include the dysfunctional multi-currency system as a result of the strong USD. In the case of Zimbabwe, the USD has become more of a commodity, a safe haven currency or asset than a medium of exchange.

There are low levels of use of plastic money and the real time gross settlement (RTGS) platforms because Zimbabwe is predominantly a cash economy. Low levels of local production to meet consumer demand have also led to higher demand for foreign exchange to import consumer goods. In addition, there is low consumer and business confidence as reflected in the high appetite by both consumers and business to keep cash outside the banking system, as well as inefficient distribution and utilisation of scarce foreign exchange resources.

It is refreshing to note that Mangudya is determined to restore the fundamental principles of the multi-currency system through increasing the availability and usage of the other currencies within the multicurrency basket. The multi-currency system was designed to minimise concentrating risk of exerting pressure on one currency in an economy, ensuring that foreign exchange is efficiently utilised and managed within the context of its supply and demand as opposed to the current laissez faire policy, and incentivising local production and generation of foreign exchange in furtherance of the “Make and Buy Zimbabwe” philosophy as advocated by the Buy Zimbabwe Campaign.

Banks and payment service providers should ensure that appropriate electronic payment systems such as card, point-of-sale, mobile and Internet are availed to all businesses as a matter of priority.

This is an issue of public interest in which all citizens are obliged to participate. It is amazing to note that some supposedly bona fide citizens of the Republic of Zimbabwe are poised and motivated to throw spanners in this public good by advocating vehemently for mass protests against this clear-cut monetary dispensation set by the central bank. That level of arrogance should be faced with the contempt that it deserves, considering the fact that it’s the responsibility of every Zimbabwean to find working solutions to all our problems as opposed to protesting against suggestions or national policies aimed at making lives easier for all Zimbabweans.