Zimbabwe prints new currency…….to be issued at a moment’s notice
Itai Mushekwe COLOGNE- President Robert Mugabe’s administration,
is reportedly sittings on wads of a new Zimbabwe currency to be backed
by a gold standard, which can be issued at a moment’s notice as a home
grown panacea to manage a dwindling economy, The Telescope News, has
been told. The idea for the gold-backed currency was first discussed in
private, between
Itai Mushekwe
COLOGNE- President Robert
Mugabe’s administration, is reportedly sittings on wads of a new
Zimbabwe currency to be backed by a gold standard, which can be issued
at a moment’s notice as a home grown panacea to manage a dwindling
economy, The Telescope News, has been told.
The idea for the gold-backed currency was first discussed in private,
between Mugabe and fallen Libyan leader Muammar Gaddafi, on the
side-lines of the inauguration of South African leader Jacob Zuma, in
Pretoria in 2009, according to senior government officials.
Gaddafi wanted a common gold currency for the whole African
continent, while Mugabe had proposed that it was better for the African
Union (AU) member states to introduce the gold standard money
individually, before announcing one common currency at a later stage so
as to throw international financial players into confusion.
Disclosures of the top secret, come at a time when finance minister,
Patrick Chinamasa has been defending the country’s use of a
multi-currency regime since 2008, as a tactical strategy to contain “the
enemy” because he cannot “devalue his own currency”.
Harare officially uses a currency basket, which includes: The
Botswana pula, the British pound, the euro, the South African rand and
the US dollar as the citizenry monetary options, following the collapse
of the Zimbabwe dollar due to mismanagement of the economy by Zanu PF.
Early this year the RBZ added four new currencies, as legal tender
namely: the Australian dollar, the Chinese yuan, the Indian rupee and
the Japanese yen.
Dispite concerns that introduction of the new currency alone, without
addressing the supply side of the economy, characterised by company
closures, will fuel a new wave of inflation, Mugabe appears determined
to rid the country of what his backers are calling “Western monetary
imperialism”.
This reporter, wrote about Zanu PF’s threats to return the local
dollar last year in a London based online publication, whose report
brought to light Mugabe’s intention to railroad a new currency as early
as June 2015.
Economic analysts yesterday said, the idea of introducing new money
prematurely was detrimental to the health of the economy, which has
somewhat stabilised owing to the use of the multi-currency regime.
They point out to growth and external competitiveness challenges,
which Zanu PF’s economic blueprint ZimAsset fails to address, as
indicated by the economy’s low trend growth and poor foreign direct
investment levels, declining share in world exports, coupled by high
current account deficits, and an external debt now topping US$8 billion.
An economic adviser to the central bank also said government does not
have the adequate resources such as money, facilities and logistics to
introduce a new currency in the middle of growing political tensions.
“The budget for the project in foreign currency terms is simply beyond the state’s resource capabilities,” she said.
The new printed currency, which is said to be warehoused at various
high security locations in the capital, including Fidelity Printers and
Refiners in Msasa comes in bank note denominations of $2; $5; $10; $20 ;
$50 ; $100 and $200 according to Reserve Bank of Zimbabwe (RBZ),
International banking sources. Fidelity Printers and Refiners, is a
subsidiary of the central bank, and the largest security and commercial
printing company in Zimbabwe, which also specializes in buying gold.
A coin regime of 1cent; 5cents; 10c; 20c; and 50c reportedly accompanies the new notes.
“The new money is already in the country, but I cannot disclose to
you where it was printed, because that was done abroad,” said the RBZ
staffer. “We have many security locations in Harare where the new
Zimbabwe dollar is being kept for security reasons. Once the president
authorizes it’s issuance, it will be in circulation within 24hours after
the central bank governor makes a public announcement to that effect.
The only reason the new currency is being withheld, is to do with
national security. There was an intelligence briefing made to President
Mugabe, about the dangers of removing the multi-currency regime without
careful planning, as there was a likelihood of a mass revolt in protest
of the Zimbabwe dollar, which many locals do not want to see especially
at this moment.”
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