It is back but not with a bang.
The government caught the nation off guard on Monday when it announced that the multi currency system had been abolished with immediate effect meaning only the local currency was now legal tender.
When President Emmerson Mnangagwa revealed a few weeks backs that a new local currency would be introduced imminently, many did not think it would be this soon and that the multi currency system would be abolished.
In their wisdom, or lack of, the powers that be believe re-introducing the local currency will spell doom for the black market currency trade. Yet history has taught us that illegal forex dealing will always be a part of us so long as foreign currency is not available in the banks.
And again one wonders what makes the government think that the Zim dollar would thrive this time around when it failed back then and when the bond has also failed judging by its loss of value against major currencies.
Maybe those in power know something we don’t know with regards to the survival of the local currency. But if not, I foresee another hyperinflation era and commodities completely disappearing from the shelves – something that has already started.
In its commentary, renowned accounting and consulting firm, Grant Thorton also cited its reservations about the bouncing back of the local currency and the total ban of the multi-currency system.
“We envisage that with no foreign currency earnings and obtaining them on the legal market still an issue to be addressed, there is bound to be challenges for companies to restock especially if the current inventory was acquired in US$. This might, at the end of the day, lead to empty shelves and massive job cuts as companies try to streamline their costs,” read the commentary and I couldn’t agree more with this line of thought.
At the moment most people have adopted a ‘wait and see’ attitude but skepticism is rife because we all know what we went through during the dark days when only the Zim dollar was legal tender.
Meanwhile, as the nation was still digesting the return of the Zim dollar, the ruling Zanu PF youth league pulled a shocker by naming and shaming the corrupt big fish both in the party and government.
Some of the people on the list include former and current cabinet ministers who also hold senior positions in the party. What is interesting about such developments is that they always bring to light the party’s internal fights because it is quite clear that there is a bigger hand behind the deeds of the youth league.
There have been reports that factionalism is still widespread within the party and that Mnangagwa is no longer in good books with Vice President, Constatino Chiwenga and that the latter is actually plotting a coup against his boss.
So this naming and shaming of allegedly corrupt party members is no doubt factionalism at play with one faction trying to get rid of the other. We are truly headed for other interesting times as far as politics is concerned!