World Bank to blame for ZiG currency shortcomings, says RBZ Governor

TAKUDZWA HILLARY CHIWANZA 

HARARE – Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu has attributed any shortcomings of the new structured currency, the Zimbabwe Gold (ZiG), to the World Bank. The central bank chief made this revelation during a recent address to business executives.

RBZ Governor John Mushayavanhu says blame the World Bank for the shortcomings of Zimbabwe's new ZiG structured currency, saying it was not an invention of the central bank. 

"We didn’t know much about a structured currency. We got a consultant from the World Bank. A lot of the things you’re seeing about the structured currency actually came from the World Bank," Mushayavanhu stated.

"So, if you’re going to blame me, you’re actually blaming the World Bank. Maybe they didn’t advise us properly. And if they did not advise us properly, it’s fine. Let’s refine it."

Mushayavanhu had previously stated that the ZiG is not an absolute invention of the RBZ. 

On 17 April 2024, while addressing business leaders at a Zimbabwe National Chamber of Commerce (ZNCC) organised meeting in Gweru to unpack the new Monetary Policy Statement (MPS), Mushayavanhu said ZiG was invented by the Confederation of Zimbabwe Industries (CZI), and not by the Central Bank.

"We borrowed a lot from a paper that was presented by CZI. We didn’t invent ZiG; it was invented by CZI," he said. 

"They are the ones who said to us that when we look at the amount of RTGS/bonds in circulation if we convert them, we can buy it all and start afresh. This came from CZI and so we consulted far and wide."

ZiG was introduced by the Reserve Bank on the 5th of April, 2024 under SI 60/2024 to replace the rapidly depreciated Zimbabwe dollar which had lost its value by almost 80%. The bank notes and coins have finished being printed and minted, the RBZ said, and they are set to be launched onto the market Tuesday next week.

Mushayavanhu said the ZiG notes and coins were produced locally and are enough "to satisfy the market’s needs". 

Zimbabweans are facing a novel economic challenge known as "triple spending", when trading and doing business, where consumers spend three times more than they intend by buying items they do not need because there is no change.

Mushayavanhu said the RBZ is working closely with the Ministry of Information, Publicity and Broadcasting Services to educate the public about the new currency. 

The launch of the new currency has also resulted in the arrest of 65 illegal foreign currency dealers on Friday last week. They were yesterday remanded in custody pending a ruling on their bail application tomorrow. 

The dealers were arrested during a police blitz in Harare’s central business district (CBD) for allegedly contravening the Exchange Control Act.