Zimbabwe News and Internet Radio

Mugabe wants to ‘liberate’ Zim from US dollar

By Itai Mushekwe

HARARE – President Robert Mugabe’s regime is planning on a launching a new currency backed by a gold standard in 2015, as part of the Zanu PF leader’s final wish to “liberate” Zimbabwe from Western monetary imperialism.

Gono told US diplomats that Robert Mugabe has prostate cancer and was told by his doctors in 2008 that the disease would kill him within five years (2013).
Gono seen here with Mugabe

High level government sources told Nehanda Radio that Mugabe, who is standing for his last election as a presidential candidate before the end of September, wants to seal his egregious land reform and indigenisation program agendas with a powerful local currency backed by gold reserves.

Harare has been using a basket of foreign currencies, since the formation of a coalition government, with the US Dollar and South African Rand being dominant. Now plans are at an advanced stage to eliminate the US dollar, which Zanu PF ‘think tanks’ see as losing its power as a world reserve currency.

Under the veteran leader’s often chaotic agrarian reform, scores of white farmers were forced to leave their farms without compensation, a responsibility which Harare argues, the British government must shoulder.

Likewise the indigenisation drive, has resulted in seizures of foreign owned companies, resulting in massive capital flight and a decimation of the local industries. Indigenisation is Zanu PF’s manifesto for this year’s election.

The new money, whose design and security features are said to be complete, shall retain its name as the Zimbabwean dollar.

Under the plans the currency will be put in circulation during the presidency, of either defence minister, Emmerson Mnangagwa or current Vice President Joice Mujuru, seen as a moderate and reformer by the international community.

Mujuru looks as a hot favourite, on paper to succeed Mugabe, if Zanu PF is to follow its constitution and organogram in resolving who becomes the next party leader.

She however seems to have lost the military muscle, which is needed by any leader to run an administration with reports that Mnangagwa’s chances at power have been growing following endorsements by senior security chiefs.

According to Reserve Bank of Zimbabwe (RBZ) insiders, the planned new Zimbabwean dollar will come in six denomination notes of $1; $10; $25; $30; $50 and $100.

The central bank plans to emblazon, the notes with portraits of the country’s leading liberation figures such as the late vice presidents, Joshua Nkomo and Simon Muzenda.

Mugabe’s own portrait is ear-marked for the $100 bill, while that of his successor may be featured on the $10 note, according to senior staffers at the RBZ. A coin regime of 1cent; 5cents; 10c; 20c; and 50c reportedly accompanies the new notes.

Zimbabwe last saw a new currency – the Rhodesian dollar – in 1970 following the decimalisation and replacement of the local pound. The exchange rate then was $0,71:US$1.

At the time of Independence in 1980 the local currency remained stronger than the greenback. The rate was $0,68: US$1. The currency gradually declined after 1980 until its dramatic crash on November 17 1997 after an unbudgeted $4 billion outlay to pay war veterans.

The country experienced an unprecedented shortage of currency in 2003. The RBZ failed to print enough banknotes due to a foreign currency crisis, leading to the introduction of travellers’ cheques and later bearer’s cheques.

Zimbabwe has in the past printed its money in Britain, Germany and Canada. Indications are that: “China this time around will print the new money for security reasons,” said an official with the ministry of finance.

“We are waiting for a new finance minister from Zanu PF to get things moving. Biti (MDC minister), has been a stumbling block.”

The idea for the gold-backed currency was first discussed in private, between Mugabe and fallen Libyan leader Muammar Gaddafi, on the side-lines of the inauguration of South African leader Jacob Zuma, in Pretoria in 2009, according to senior government officials.

Gaddafi wanted a common gold currency for the whole African continent, while Mugabe had proposed that it was better for the African Union (AU) member states to introduce the gold standard money individually, before announcing one common currency at a later stage so as to throw international financial players into confusion.

A second meeting to finalise discussion on the matter, took place in Harare on 23 August 2010 between Mugabe and Gaddafi’s son, Saadi Muammar Gaddafi, who claimed to have come to discuss investment opportunities with Zimbabwe, sources said.

RBZ governor, Gideon Gono, has already lifted the lid on the secret currency recently in the local media.

“There is a need for us to begin thinking seriously and urgently about introducing a gold-backed Zimbabwe currency that will not only be stable but internationally acceptable.

“We need to rethink our gold-mining strategy, our gold-liberalisation and marketing strategies as a country. The world needs to and will most certainly move to a gold standard and Zimbabwe must lead the way,” Gono has said.

“The events of the 2008 global financial crisis demand a new approach to self-reliance and a stable mineral-backed currency, and to me gold has proven over the years that it is a stable and most desired precious metal.

“Zimbabwe is sitting on trillions worth of gold reserves and it is time we start thinking outside the box, for our survival and prosperity,” Gono said.

China has been proposing for the replacement of the US dollar as the international reserve currency in the past years. Beijing wants a new global system controlled by the International Monetary Fund (IMF).

China holds Foreign-exchange reserves amounting to US$ 3 billion as of March 2011. To bring about a new regime to the current system, Beijing had previously suggested expanding the role of Special Drawing Rights (SDR), introduced by the IMF in 1969 to support the Bretton Woods fixed exchange rate order, but things collapsed in the 1970s rendering the overtures irrelevant.

At present, the value of SDRs is based on a basket of four currencies, which include the US dollar, pound sterling, euro, and yen.

The US Dollar Index comprises of just 6 currencies. The euro has a weighting of some 58,6%, followed by the Japanese yen with 12,6%, others are the pound sterling (11,9%) the Canadian dollar, Swiss franc and Swedish krona account for the remaining 16,9%.

  • Muchati Bwege

    Who told him that ZANU PF will still be in power????

  • Zimbo Forever

    Way to go Mugabe. Zimbabwe, the only land that shall overflow with milk and honey.

  • currency advocate

    The US currency is dead, it’s no secret. Europe is going to be burning, and there are troubles with the Euro. Saka Gushungo pamberi nemi. Weather Zanu PF wins or loses, any new government must give us back our own dignity. We have no money of our own, so where is the liberation?

    • lykmoor

      The issue of the currency does not solve anything.First thing are human rights and freedom then reviving our economy by an injection of the US dollrs. Liberation without righs and fredom is a fallacy.

      • Kevin Poss

        Haha, so “injecting” more (increasing supply) of a currency that is less and less in demand will somehow give people who aren’t receiving wage increases more purchasing power to revive the economy? There’s nothing to be done anymore. This is what decades of living beyond your means brings (from a global perspective).

  • hozheri

    Zviroto zviroto,hw are yu going to restow confidence to pple,these crazy zanla economists eg kadzura who cannot even take care of their family cannot teach us new tricks ,the whole regime must go first ,including this thief turning rbz gorvenor aka gono,then that’s when we talk of modalities and intruments to rejuvinate Zim dollar ,otherwise itai henyu munenge matondipinzawo basa paroad port

  • the Berean

    Sekuru Gushungo should just retire in grace zve currency vosiira next generation to clear the mess. He has done what he did and we thank God so far but he has done enough and his time is up…ngavasiyane nazvo

  • Noodles Makonzo

    Bopcoin alc,
    Takungoti chero ichitenga chete. Chamuka inyama.

  • lykmoor

    Gono is trying to curry the flavour with Mugabe for his past deeds.

  • itaiti

    just give it up, and retire in peace, please

  • Thulani Mpofu

    This is the way forward. However, this is exactly what the bank controlled west does not want to hear about. Our government is playing with fire. NATO will be here overnight. While many might be thinking the only reason NATO went into Libya was oil, think again. Research the Libya invasion again. At the time of Libya’s invasion, Libya was debt free, was about to launch and was advocating for a gold backed currency called the

    • robobo

      a lot of BS for “research” for nothing…

  • Kuchinja varikutonga, vacho vakauraya Zim dolllar is the solution.

  • MwaD

    $30 note.

  • chinja maitiro

    30 dollar note is an oddity that defies logic . this is stark staring lunacy . insane just like the party mooting it . the mdc should capitalise on this madness as a campaign tool and urge voters to kick out this effete monument .

    • reckless99

      I thought I was the only one who saw that

      Kwahi “China this time around will print the new money for security reasons” KIKIKIKIKIKIKI

  • Sydney08

    You see when we say Zanu-PF has rigging instruments in place to steal elections, some pple think we are insane.How do they know that they will be still in power? After having been defeated in the March 2008 elections, surely they shld be having some doubts in their minds as to whether they will be elected again or not in the forthcoming elections.But what gives them this audacity to say they will be in power without any shadow of doubt, is the fact that they know, their rigging machinery will deliver them the expected results under whatever circumstance.Some times these Zanu-PF loyalists think that they are leading a country full of fools.

  • robobo

    Give me a choice between Mugabe’s “gold backed dollar” and the US $ it will be “no contest” just like elections in Oct/Nov 2013 !
    Crazy days….a $25 & $30 note and no $5 note …what about a 27$ or a $16 note ? hahahaha zanoidism at its best !

  • Vernon Johnson