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Structured Currency Will Not Address Currency Crisis - Mugano

11 months agoWed, 03 Apr 2024 06:58:52 GMT
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Structured Currency Will Not Address Currency Crisis - Mugano

Economist Professor Gift Mugano has broken his self-imposed silence on Zimbabwean economic matters, and this time he dismisses the government’s proposed “structured currency” as merely a revival of previously unsuccessful initiatives.

In January this year, Mugano said he would no longer comment on Zimbabwean economic matters after he was repeatedly labelled an “anti-economic progress” person by ZANU PF.

However, in an interview with NewZimbabwe.com, Mugano pointed out several fundamental weaknesses of the government.

In response to inquiries about whether the structured currency could mitigate the currency crisis, Mugano emphatically rejected the idea, asserting that the new currency would not contribute to stability.

Mugano underscored the shortcomings of past endeavours, including gold coins, gold tokens, and the bond note supported by the African Export–Import Bank (Afreximbank). He said:

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Does the structured currency help us to address the currency crisis, the answer is no, and that is the V11.

Why didn’t these gold coins, gold tokens succeed in guaranteeing stability? Then why is a bond note that is backed by AFRI-EXZIM bank failed to guarantee 1:1?

So there is nothing new about what they are talking about, they are just regurgitating the same things they are doing vocabulary nice terms but in reality that is just nothing.

They are not going to be launching anything new, the problems are going to continue full stop.

Mugano asserted that the solution to Zimbabwe’s currency crisis is increased production, investments and savings. He said:

We have solutions there are measures, the first thing which we need to address is that a currency is dependent on production, so if you don’t produce as a country you can’t defend the currency.

So the strength of the currency in any country is a reflection of the country’s production capacity, so the big elephant now is what do we need to do to raise production, we need savings and investments because the savings are identical to savings.

So then the second question is why do you need to have savings? If you are not saving you have no money you can’t create creation, in 1996 the savings GDP ratio was 25 per cent right now we are in negative 11% because the people are not saving money, right?

Online publication, The Newshawks, reported the new currency will likely be launched by outgoing Reserve Bank governor John Mangudya this Friday.

Mangudya was officially replaced by John Mushavanhu who officially took over last week.

More: Pindula News

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31 Comments

Anonymous · 11 months ago
This government is clueless,dololo
Anonymous · 11 months ago
Ngatiitei zve barter trade,mongoramba muchinjanisa ma currency Zanu yazvikonewa since nguva ya Gono nanhasi
Sorojena · 11 months ago
Seems another black Friday is looming. Command economics have never worked in Zimbabwe, this is in our living memory, otherwise there is no need to create another currency, Zim needs production, rule of law clean elections kwete zvemahumbwe zvatirikuwona. This so called new currency won't go anywhere, it's just another bond story flash back. Repeating the same mistake again and again smacks of clueless failure
bakafwide · 11 months ago
the thieves, murderers, zanupf are always afraid
🏃‍♀️ Chi baby Che Zanu 🌊 · 11 months ago
Mugano ndiye wekinyora blue print ye strategic ambiguity
🇿🇼🇿🇼🇿🇼 · 11 months ago
Money is trust. Who remembers the plastic tokens that were made by combi crews to represent 50cents that were used as change? People accepted them because they knew they could exchange them for their next ride, that is trust. The US$ and the UK pound are stable because the whole world has trust that they are not going to wake up the next day and find their bank balances wiped out. The same applies to many countries with stable currencies. The reason why the Zim$ keeps losing value is because noone trusts the Zim gvt and this is based on past experiences. A change of gvt, the removal of zanupf from gvt can change our fortunes without changing our currency. This is achievable within 24 hours. All we need is trustworthy people in gvt
Anonymous · 11 months ago
A couple of things need to take place first for people to see change to strengthen our currency,political stability,production,confidence in banking system,human rights,rule of law,
karinga soup · 11 months ago
@cde Hondo ka you made my day hanzi chimboitai rigging pamari tione zvakaoma sure wandisekesa haa haa haa
born free · 11 months ago
iwe Taneta wangogona kindituka chete asi Ka hona sha a comment yako iwe ndeye kutii ini ndati politics controls everything iwe unoti kudii
Economic · 11 months ago
What Mugano said is absolutely true quoting from what he said "they are just regurgitating the same things they are doing vocabulary nice terms but in reality that is just nothing". Mugano we should just use this statement and not write pages of what is to come. That statement says it all
intellectual · 11 months ago
yes u are right!!!
Anonymous · 11 months ago
Apa ndipo pega pawataura zvisina political bias iwe Mugano. At least wadzoka wave a reformed person in terms of your comments. Wange wave kurashika mumwe wangu. At least we can listen to you. You said there must be increased production, savings and investments. Let us all put our hands on the deck so that production and investment increases. Ngatiregei kutaura zviri negative nenyika yedu ngekuti zvinodzinga ma investers.
Anonymous · 11 months ago
ZanuPf kungotaurirwa chokwadi they rush to incline it to political bias,
Cde hondo · 11 months ago
Hapana chinobuda apa as long as it's from zanu pf led gvt. Vanhu vatoiramba kare isati yabuda mari yenyu iyi. From dollar to structured maedza zvingani zvichiramba chete. Imboitai rigging pamari tione
Mdara Odza · 11 months ago
Mugano is pinpoint accurate, there won't be anything new, it is the same thing that's being renamed. Besides, the lack of production means the so called new currency has no sound backing, it will crush just like what the former bond note did.
🏃‍♀️ Chi baby Che Zanu 🌊 · 11 months ago
Mugano is a propagandist
🏃‍♀️ Chi baby Che Zanu 🌊 · 11 months ago
Mugano akamboti hachataura chii chii. Nhasi akutaura zvekare.I think he's another attention seeker. KUNE NZIRA DZANA MAGAISA NANA MAVHINGA DZEKUZVIBATA NADZO.
flying Doc ( 3Ds) · 11 months ago
mkadzi chaiye ane da...ko , mat....inji... uye pfungwa dzinodzonza , ane chibereko chinozvara a normal person , I doubt not even one second will she back such political no...nse....nse . une maziso but hauni kupofomadzwa nevanozvit vangangwar , nzeve dziripo but haunzwi , stop being blinkered lyk horses .. tried and tested hazvina kushanda ... what is needed in Zim situation it's only overhaul of the current system 2 b precise all old horses shld pave way for new blood with fresh ideas.. we nid 2 accept failure ...... as long as we kip on bulldozing everything the country will remain the worst...
Taneta · 11 months ago
born free you are a fool born under the musawu tree, grow under the musawu, sleep under the musawu,eat under the musawu, learn under the musawu , you know nothing my friend
pindula · 11 months ago
chibabe chezanu chrikubasa muchaona kana chokanda makomenti
born free · 11 months ago
mugano Uno. nyepa zvakaipa zvese zvauri kutaura zve production hazvishande. uri kunyepa first thing political issues dzikango gadziriswa then zvimwe zvese izvo hazvichanetsi
Anonymous · 11 months ago
All born frees your minds were zanufied ,you don't think,please afford yourself time to read a book called Animal Farm and relate it what is happening in Zim then you will wake up.
🤔 · 11 months ago
ehezve now we can listen to a professor of economics talking about the so called structured currency and you can see that he's in his zone kwete zve tsikombi yazuro iya inongoda kumwauka nhau dzinoda ma experts in the field. kuzviti advocate hazvirevi kuti wakungo jambira dzemundege iwe urimu Honda fit.
patz · 11 months ago
@🤔 Hazvimbodi expertise izvi zve structured currency. Kungofonyorwa brain kuti mufunge kuti pane zvisvinu zvichabuda. Tonderai **** remakoko ukamuchinja zita kuti akunzi Thomas anobva atanga kugona here. **** i**** chete. Kana iyo bond haizomboite value nekuti yakunzi structured
Patriot · 11 months ago
Hapana chaataura uyo kunge ari sponsored naFadzai Mahere they don't want to see success only kus****podza our ED led government manje 2030 tense tichipo ✊🏾🇿🇼
☝️ · 11 months ago
@patriot....handione chiri chinhu chakanaka kuti nezera ravawe iri urambe uchingoumba mombe dzemadhaka neku rwisanisa mombe kumafuro chakanakira economy ndechekuti hapashande zviya zvekuti slogan chairman dai Mwari wakunzwira nyasha wasunungurwa kubva mu hutununu nehupenzi hunodarika hutununu nehupenzi hwose huzere mune rako dzoro.
Kaiser Sozés · 11 months ago
chero mukasvika year 3 000 muchiti munenge muripo, the fact still remains and lyk @kg is written in bold #MAZVITADZA from bearer cheques, special agro cheques, rtgs, bond coins ,bond notes (1::1 gedge) gold coins, nostro zig etc Iwo mastructure munomada dai vari vakadzi maida madhunda chete
laugh emoji1
Anonymous · 11 months ago
kasi hauzvizivi kasi ataura chokwadi

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