Publicise currency switch
Over a week after the Reserve Bank of Zimbabwe introduced a structured currency termed Zimbabwe Gold (ZiG), very little has been done to publicise the currency switch, a situation that has caused a lot of inconvenience for long suffering citizens.
For over a week Zimbabweans were struggling to transact as financial institutions worked overtime to configure their systems to be able to process payments using the new currency.
According to the RBZ, the value of ZiG will be anchored by foreign currency accumulated through export surrender requirements and gold reserves from mining royalties.
There is optimism from certain quarters that if well implemented and underpinned on transparency and accountability, the ZiG will stand the test of time.
If the ZiG doesn’t go the same way as the RTGS, bearer cheques, agro cheques and bond notes before it then it would be a plus for Zimbabweans that have in the past seen their entire savings being wiped out by inflation.
A stable currency will mean creation of jobs to absorb thousands of graduates that leave tertiary institutions every year and reduce poverty. This is why it is very important for the authorities to get it right the first time.
It was a misnomer that the currency was introduced without a well-structured publicity campaign to make citizens aware of the monetary reforms and also to ensure acceptance of the currency.
Most commuters endured a torrid week as public transport operators started rejecting the Zimbabwe dollar after hearing that it was being scrapped.
The RBZ had to issue a statement assuring the public that the old notes will remain legal tender until new ZiG notes and coins become available on April 30. People needed to be adequately prepared for the currency switch.
Where there is lack of information there tends to be a vacuum that is filled by peddlers of false news that can determine the success or failure of a new currency.
The RBZ must now rollout an aggressive publicity campaign that will reach remote parts of the country to promote the ZiG.
Zimbabwe has a long history of currency failures to a point that very few envisage a situation where the ZiG will become a success and that means the RBZ has its work cut out in trying to persuade ordinary people to have faith in the new currency.
Besides the publicity, the monetary authorities need to walk to the talk on the promises they made to keep the ZiG afloat.
The new RBZ governor John Mushayavanhu said he will stop the RBZ’s quasi fiscal activities and reckless money printing. The world is watching.