Does Zimbabwe need a new currency?

People in Zimbabwe get nervous when anyone mentions the return of a Zimbabwean currency. The trauma of the hyperinflationary days has left many people disillusioned and totally against a local currency. Some people would prefer Zimbabwe to be part of a Rand Monetary Union.

I believe we need to explore the possibility of a mineral based currency in Zimbabwe.

We are a mineral rich country, and have the ability to peg our currency against a parcel of minerals; the global economies ailing from the recession are beginning to debate the return to the gold standard as the US dollar has lost value over the last few years, and we have a unique opportunity unlike any other country, because we are in a period of transition, in which we no longer use our own currency.

Perhaps the new currency will not be called the dollar. Our regional neighbours contextualized the names of their currencies in keeping with their cultural values and aspirations. For example we have the Pula (rain), Kwacha (It dawns) and Rand. Will our currency have a vernacular name? Will it be linked to a mineral standard? Time will tell. – Tapiwa Chizana

Tapiwa Chizana is a partner at Deloitte & Touche, but writes in his personal capacity.

Post published in: Letters to the Editor

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