‘Blame the World Bank too on ZiG’: RBZ governor creates social media mess

In recent news, there has been a debate about the Reserve Bank governor’s statement that they did not know about structured currency. Many people feel that he is shifting the blame to the World Bank, who offered that advice.

Speaking at the Zimbabwe Independent’s post-monetary policy review breakfast meeting held in Bulawayo last Wednesday, RBZ governor John Mushayavanhu revealed that the creation of the new currency, Zimbabwe Gold (ZiG), was the culmination of market-wide consultations.

Also Read: How ZiG introduction averted a systems crash

The RBZ boss also stated that since they did not know about structured currency, they engaged a World Bank consultant.

“We got a consultant from the World Bank sent to us, and a lot of things that you are seeing about a structured currency actually came from the World Bank,” Mushayavanhu added. “So, if you want to blame me, you are actually blaming the World Bank, maybe they did not advise properly, and if they did not advise properly, it’s fine. Let’s refine it.”

This revelation ignited controversy on social media, with Zimbabweans expressing outrage and criticizing both the governor and the finance ministry for introducing a currency they had no prior knowledge of.

Netizens have accused Dr John Mushayavanhu of deflecting blame and using the World Bank as a scapegoat for their perceived incompetence.

Here are some of the reactions;

@MutedzvaMi73;

So they know nothing about structured currency, but they have introduced it anyway

@Muza2206;

World bank and Mthuli thats a recipe for disaster. I am sure RBZ paid millions in USD for that ‘consultancy’ work. Imbavha idzi!

@drvictorryan;

see why l refused to back the currency based on the MPS. This is utter madness; now he doesn’t have confidence in his currency. How does he expect the world to?

@mathias1malandu;

ESAP failure was blamed on IMF, sir if you take the advice means you have done due diligence.How can the world bank be held accountable by us the citizens,you…and the finance minister should be accountable

@Ga58194222;

Still taking and following advice from The world bank?

Wonders will never cease…Confusion at its highest

The creation of ZiG came after the ZWL$ had depreciated over 250% in the first quarter and over 700% last year. However, despite the efforts to create a structured currency, the market has given a vote of no confidence in ZiG, and the local currency’s value remains highly volatile on the parallel forex market trading between US$1:ZiG18 to ZiG22.

The uncertainty surrounding the ZiG currency has caused concern among Zimbabweans. It is important to note that despite the government’s efforts to create a stable currency, the market ultimately determines its value.

This is why it is crucial to have a stable and reliable currency that can withstand market fluctuations.

It is also essential to have transparency and accountability in currency exchange policies. The recent debate surrounding the ZiG currency highlights the need for clear communication and consultation with industry experts before implementing any significant changes to the currency system.

The creation of the ZiG currency was an attempt to stabilize the local currency and combat inflation. However, the market has given a vote of no confidence in ZiG, and its value remains highly volatile.