Prominent Zimbabwean opposition politician Nelson Chamisa has said the Government’s plans to establish a currency board and introduce a structured currency are “too little too late”.
Chamisa, who narrowly lost in the 2018 and 2023 presidential elections, said Zimbabwe’s currency crisis is a crisis of confidence.
Posting on social media site X, Chamisa warned that the new plan would fail the same way previous interventions failed due to a lack of confidence.
Chamisa said only genuine comprehensive political and economic reforms that prioritize accountability, transparency, and the rule of law will restore confidence and save the country’s currency. He wrote:
<blockquote>
The currency crisis Zimbabwe faces is basically a crisis of CONFIDENCE. This confidence deficit crisis can’t be addressed by setting up a currency board or establishing a structured currency framework.
This is why previous efforts which include the introduction of bond notes, gold coins and ZIG failed dismally.
Regarding the asset-backed currency, I must express deep scepticism. This strategy is a rehash of previous failed attempts.
The introduction of gold-backed digital coins and gold coins has already proven ineffective, leading to the discounted sale of gold and contributing to the smuggling of precious resources out of our country.
Moreover, the lack of transparency surrounding this process only fuels suspicion and undermines public trust.
As for the proposed currency board, my assessment of where this has happened successfully shows that the success hinges on accountability, transparency, and adherence to legal instruments—qualities sorely lacking in Zimbabwe’s current governance.
The pervasive state policy inconsistency erodes confidence in the system’s integrity. Without these critical success factors in place, the currency board is doomed to fail.
For the avoidance of doubt, I know that currency boards have been used in over 38 countries with notable success because of the “confidence effect”, especially in circumstances where credible people of integrity and high standing were appointed to the board.
I am also aware that currency boards work well in circumstances where the central bank holds sufficient foreign which will match the demand for foreign currency at a pegged exchange rate.
Our situation is so dire because it is characterized by a confidence deficit, and exogenous shocks (drought &amp; subdued commodity prices) which have a net effect of depleting our forex and will weaken the effectiveness of the so–called structured currency and currency board. 
It’s clear that the they are resorting to ineffective fiscal and monetary policies as the economy continues to suffer from currency leakage and a lack of value generation, exacerbated by the refusal to implement a single currency status and abandon the flawed interchange auction system.
Instead of tinkering with ineffective superficial solutions, Zimbabwe needs genuine comprehensive political and economic reforms that prioritize accountability, transparency, and the rule of law. Only then can we build a stable and prosperous economy for everyone.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Currency Board, Structured Currency, Asset-backed Currency Will All Fail - Chamisa

Former Finance Minister Tendai Biti said that the Government should disband the Reserve Bank of Zimbabwe (RBZ) and replace it with a currency board.
Biti, who is the Harare East legislator (CCC), said the RBZ has become a rogue and unnecessary institution that is dabbling in quasi-fiscal activities which cost the public.
Speaking at a Zimbabwe Debt Indaba hosted by the Zimbabwe Coalition on Debt and Development (ZIMCODD) in Harare, Biti said:
<blockquote>
The elephant in the room is the RBZ and under John Panonetsa Mangudya, it has become a rogue institution.
In my respectful opinion, the country does not actually need a reserve bank. Let us have a currency board.
All the RBZ does is dabble in quasi-fiscal activities which cost you and me. Last year we have had two debt assumptions.
The country’s domestic debt has grown from US$1.5 billion in 2015 to US$3.5 billion in December of 2021. That is not good enough, that is a rogue central bank.
If they are incapable of repenting then we must do something. If they are incapable of Damascus moments then we must do something.
And doing something is drastic. The country does not need a central bank; it needs a currency board.
</blockquote>
<h4>More: <a href="https://www.newzimbabwe.com/shutdown-the-reserve-bank-biti-tells-government/">New Zimbabwe</a></h4>

Biti Says RBZ Should Be Disbanded And Replaced With A Currency Board

United States of America-based economic commentator Steve Hanke said that if Zimbabwe wants its own stable currency, it should have a currency board.
Writing on microblogging site Twitter, Hanke said:
<blockquote>In Zimbabwe, even a simple salad costs nearly $16. Yes. That’s USD. With an annual inflation rate of 396%/yr, even basic items have become luxuries. If Zimbabwe wants its own stable currency and low inflation, it must establish a currency board.</blockquote>
<blockquote class="twitter-tweet" data-dnt="true" data-width="550">
In <a href="https://twitter.com/hashtag/Zimbabwe?src=hash&amp;ref_src=twsrc%5Etfw">#Zimbabwe</a>, even a simple salad costs nearly $16. Yes. That’s USD. With an annual inflation rate of 396%/yr, even basic items have become luxuries. If Zim wants its own stable currency &amp; low inflation, it must establish a currency board. <a href="https://t.co/2t8YVnWerJ">pic.twitter.com/2t8YVnWerJ</a>
— Prof. Steve Hanke (@steve_hanke) <a href="https://twitter.com/steve_hanke/status/1142099868737036298?ref_src=twsrc%5Etfw">June 21, 2019</a></blockquote>
<script async="" charset="utf-8" src="https://platform.twitter.com/widgets.js"></script>

Zim Should Have A Currency Board To Have Its Own Stable Currency - Steve Hanke

United States of America-based economic commentator Steve Hanke said that if Zimbabwe wants its own stable currency, it should have a currency board.
Writing on microblogging site Twitter, Hanke said:
<blockquote>In Zimbabwe, even a simple salad costs nearly $16. Yes. That’s USD. With an annual inflation rate of 396%/yr, even basic items have become luxuries. If Zimbabwe wants its own stable currency and low inflation, it must establish a currency board.</blockquote>
<blockquote data-dnt="true" data-width="550">
In <a href="https://twitter.com/hashtag/Zimbabwe?src=hash&amp;ref_src=twsrc%5Etfw">#Zimbabwe</a>, even a simple salad costs nearly $16. Yes. That’s USD. With an annual inflation rate of 396%/yr, even basic items have become luxuries. If Zim wants its own stable currency &amp; low inflation, it must establish a currency board. <a href="https://t.co/2t8YVnWerJ">pic.twitter.com/2t8YVnWerJ</a>
— Prof. Steve Hanke (@steve_hanke) <a href="https://twitter.com/steve_hanke/status/1142099868737036298?ref_src=twsrc%5Etfw">June 21, 2019</a></blockquote>

Currency Board Latest News

Latest Jobs