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Zimbabwe Central Bank Governor Urges Relaunch of Gold-Backed Zim Dollar

  • Chris Gande

Former finance minister Simba Makoni, head of an opposition party, Mavambo Kusile Dawn, said reintroduction of the Zimbabwe dollar would violate the 2008 Global Political Agreement for power sharing

Reserve Bank of Zimbabwe Governor Gideon Gono has again called for a relaunch of the Zimbabwean dollar, removed from circulation in early 2009 after losing all value due to a near-historic wave of hyperinflation stoked, say critics, by Gono's profligate policies.

Since then the country has run on a monetary regimen of mixed hard currencies, chiefly the US dollar and South African rand. The system quickly restored price stability.

Today Zimbabwean dollar notes in denominations of up to US$100 billion circulate only as collectibles or mere objects of curiosity offered for sale on the Internet.

Gono told the state-controlled Herald newspaper that Zimbabwe could not continue using the US dollar because it was foreign cash. He said Zimbabwe should bring back its own dollar and back it with gold reserves to avoid a second hyperinflationary wave.

“Now that Zimbabwe is awash with gold the nation should reintroduce the Zimbabwe dollar but this time backed by gold,” Gono told the Herald. President Robert Mugabe has also urged revival of the national currency on a number of occasions, but Finance Minister Tendai Biti has just as often voiced opposition to the proposition.

Former finance minister Simba Makoni, head of an opposition party, Mavambo Kusile Dawn, told VOA Studio 7 reporter Chris Gande that reintroduction of the Zimbabwe dollar would in addition violate the 2008 Global Political Agreement for power sharing.

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