State of Zimdollar spells doom

IT can only happen in Africa; and it is, indeed, such a shame that the continent has become world famous and synonymous with leaders who are so crass that they will walk with a swagger while their noses point to the sky when their economies are a shambles.

NewsDay Comment

It is, indeed, only in Africa where failed leaders will kill to defend their blatant failures. And, indeed, it is very sad that amid all this mess there are cheerleaders busy ululating and applauding the disastrous mediocrity.

A case in point is the fact that the Zimbabwe dollar has plunged 85% since it was reintroduced as legal tender exactly a decade after it was shunted out of circulation by brutal hyperinflation which officially topped 500 billion percent by December 2008.

As if eternally cursed, the reintroduced local currency is again being mauled daily and increasingly proving useless against other major currencies.

If this were somewhere else where leaders care much about their personal reputations some would have resigned in the wake of such a disaster. Honestly, how can someone who, some 10 months ago, was so confident about the currency weathering the storm still be in office? Midway through the year those who birthed the Zimdollar suddenly decided to stop telling us the rate of annual inflation, ostensibly to help build confidence in the trouble currency. But everything point to the fact that the attempt was a dismal failure. Period!

A more than 500% loss in value of any currency is simply catastrophic and so shocking that it should send someone’s blood pressure to hyper levels. But this is Zimbabwe, which happens to be in Africa, where the strangest of things have become so commonplace that an economic disaster is now being accepted as the norm. If this is yet another new norm for the southern African nation, then little wonder millions have been fleeing into self-imposed exile.

Under such circumstances it is very difficult for anyone in their senses to continue having hope when all the fundamentals that should be raising confidence are absent.

If the people, who reintroduced the Zimdollar back in February assertively telling us that the currency would hold its own, are still insisting that the currency will rise from the intensive care unit, then God, Allah and all the gods help us. We hope and pray that we will be proved wrong in our lifetime.

5 Comments

  1. The zimdollar has never lost that amount of value that you are talking about because it has never had it to begin with. If my memory serves me well, the zimdollar was initialy pegged at 1:2,5 against the us dollar and the monetary authorities clearly stated that this was not to say this was the real value of the currency but was just a takeoff point which would see the market play its role to determine the value from time to time moreso because we were in the era of transitional stabilising program. The government has very often asked for patience on the part of all citizens since they expected things to worsen before they get better and this is exactly what we are seing. I wonder where this commentator was when all these things were said. The authorities were buisy working on fiscal consolidation and now will start focusing on production which will start to gradualy give the currency practical value. I kindly urge those in the media fraternity to be responsible citizens and work for the good of Zimbabwe.

    1. Please explain why at the inception of the Zim dollars banks were instructed not to separate the US dollar from the bond note accounts if the government never stated that the currencies were at par? Even Mangudya told us if the bond lost its value he would resign.

      I hope you are not equating being a responsible citizen with peddling lies. What sort of patience are you talking about when the prices of bread and mealie meal have risen by nearly 600% in less than a year? Do you live in this country of you are commenting from a far flung land? Your comments are extremely painful for those of us who lost money due to this government’s deceptive ways. Are you honestly saying you do not recall Finance Minister Mthuli Ncube proclaiming the parity of the bond note with the US dollar?

    2. stop talking out of your backside, spoken like a true ahole !!!

    3. EDIOT

  2. Are you serious? When the bond was introduced banks were instructed not to create separate accounts between US dollars, bond notes and RTGS. If it never had that value then how could bond notes and dollars share an account?

    Being a responsible citizen should not be equated with lying to ourselves. The issue of US dollars is a painful story to may of us who lost our hard earned cash because of this government’s deceptive ways.

    Where is this production that the authorities were focusing on? What do you even mean by patient when we experienced nearly 600% inflation in less than 12 months? Do you live in this country or you are writing from far a flung land? Alternatively, are you one of those who are having it so good that you feel obliged to mislead? How do you explain the price of bread and mealie meal if the Zim dollar has not lost the kind of value referred to in this opinion peace?

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