ZIMBABWE’S NEW GOLD CURRENCY AND FALSE HISTORY CLAIMS

At the Zimbabwe International Trade Fair in Bulawayo, Vice-President Constantino Chiwenga made a surprising statement. He said that the bond notes, which Zimbabwe recently stopped using, were a colonial legacy from Rhodesia’s Ian Smith era. This left many people confused. Bond notes were not from the colonial period. They were introduced in 2016 by the government of Zimbabwe, under the late President Robert Mugabe. Chiwenga’s statement is not true.

Zimbabwe’s recent history with money is complex, and some officials use this confusion to spread false stories. The introduction and removal of bond notes are part of a bigger picture of Zimbabwe’s troubled money system. Now, the government is introducing another new type of money called the Zimbabwe Gold (ZiG). Like before, there is confusion and misleading statements around this new currency.

Zanu PF spokesperson Chris Mutsvangwa added to the confusion by saying that ZiG was a return to the time when Zimbabwe used gold as currency. This is not true. Zimbabwe has traded gold as a commodity, but gold was never used as currency. The Reserve Bank of Zimbabwe governor, John Mushayavanhu, made things even more confusing by saying ZiG was part of World Bank talks. He said that criticizing ZiG was like criticizing the World Bank. This statement is also not true.

These false claims are making it hard for people to trust the new ZiG currency. Even before it is fully introduced, many people already doubt it. This is because of past problems with money, such as the bond notes, which the government said were backed by a big loan. This turned out to be false. The same fears now surround the ZiG currency.

Zimbabwe’s history with gold is real, but gold was never used as the main part of the economy. Agriculture has always been the backbone of Zimbabwe’s economy. Gold has been traded, but it was never the basis of the country’s money system. Some officials are trying to paint a different picture, but the real history is more complicated. During colonial times, Zimbabwe was on the gold standard, but that doesn’t mean gold was the main currency.

Zimbabwe’s true money history includes many different types of currency. The British South Africa Company introduced Sterling-based currency in Mashonaland, which later changed over the years to the Rhodesian dollar and eventually the Zimbabwe dollar. The claim that Zimbabwe’s economy was always built on gold is not correct.

The government’s new push for the ZiG currency seems like another attempt to bring stability to the country’s struggling economy. They say the ZiG is backed by gold and foreign exchange reserves. But many people do not believe this. The government has tried similar things before with traveler’s cheques and bearer cheques. These did not solve the money problems and failed to bring long-term stability.

The pattern of trying new forms of money shows that Zimbabwe is struggling with deeper economic problems. The country’s monetary system has faced crisis after crisis, and the government has not been able to keep the currency stable or trusted.

Dr. Tinashe Nyamunda, a lecturer in Economic and Social History at the University of Glasgow, wrote an article called “Money in Zimbabwean History: A Concise Currency Timeline.” He talks about how important it is to know the real history of money in Zimbabwe. His article shows how dangerous it is for politicians to use false stories to justify their actions. Understanding the true history of money can help make better decisions today.

As Zimbabwe introduces the new ZiG currency, it is very important for government officials to tell the truth and give clear information. If they keep spreading false stories about history, it will only make things worse. People need to trust their government and believe that their money is stable. Without trust, the economy will continue to face big challenges.Zimbabwe’s history with money is not simple, but the government must be honest if they want to fix the problems.