By Business Reporter- In a startling admission, the newly appointed Reserve Bank of Zimbabwe (RBZ) Governor, John Mushayavanhu, has openly acknowledged the ineffectiveness of the Zimbabwean Integrated Gold-backed currency (ZiG). 

Mushayavanhu disclosed that the authorities were in the dark regarding structured currency and had to seek guidance from a World Bank consultant before launching ZiG.

Economists had previously cautioned against the adoption of any new currency without addressing the underlying economic issues plaguing the nation.

Speaking at a recent gathering of business executives, Mushayavanhu shifted the blame away from himself, attributing ZiG’s flaws to the advice received from the World Bank consultant.

 He stated, “We didn’t know much about a structured currency. We got a consultant from the World Bank. A lot of the things you’re seeing about the structured currency actually came from the World Bank. 

So, if you’re going to blame me, you’re actually blaming the World Bank.”

In a further blow to ZiG’s credibility, Mushayavanhu revealed during a meeting organized by the Zimbabwe National Chamber of Commerce (ZNCC) in Gweru to discuss the new Monetary Policy Statement (MPS) that ZiG was not even conceived by the Central Bank. 

He asserted that ZiG was the brainchild of the Confederation of Zimbabwe Industries (CZI), distancing the RBZ from its inception.

Mushayavanhu elaborated on the consultations leading up to the MPS, emphasizing the extensive engagement with various stakeholders.

 He admitted that CZI played a pivotal role in the development of ZiG, stating, “We borrowed a lot from a paper that was presented by CZI. We didn’t invent ZiG; it was invented by CZI.”

Despite the efforts to promote ZiG, skepticism looms large among Zimbabweans, with many fearing its inevitable failure akin to the troubled RTGS and bond notes. 

ZiG, introduced under SI 60/2024 by the Reserve Bank, faces an uphill battle to gain credibility and trust in the eyes of the public.