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  • Writer's picturerutendo matinyarare

DRIVING DEMAND FOR ZIM DOLLAR.


1. As long as our government sells our minerals and exports in US dollars instead of demanding Zim dollars as payment, the demand for the Zim dollar will remain low.


This is because our government's preference for US dollars over local currency shows no confidence in their own currency.


2. The government must immediately outlaw the use of US dollars for internal transactions, as it is inefficient for a nation to use scarce foreign currency reserves to pay for basic goods like tomatoes, instead of driving importation of fuel, machinery, productive inputs, medicines, medical devices or chemicals.


This is supported by the fact that after the Second World War, the US used the #MarshallPlan to revive the European economy with US dollars. However, they insisted on a broken Europe creating its own local currencies to avoid using scarce US dollars internally because they would have destroyed Europe's economy.


3. The Zimbabwean government must also discourage the use of foreign currency on unnecessary expenses like ostentatious luxuries in times of war.


Zimbabwe is in an economic war, similar to the one that brought down the Rhodesians and apartheid government. Government coffers have no forex reserves; hence, Zimbabweans must ration the use of foreign currency during this time.


It makes no sense for Zimbabweans to spend foreign currency importing luxury items like Rolls-Royces, private jets and expensive drinks, when it depletes the nation's forex reserves, hence the US supports it.


The government must discourage such fruitless expenditure that depletes the treasury and national forex savings.


4. ZIMRA must carry out lifestyle audits and cross-reference expenditure of the most significant importers of luxuries and externalizers of forex, against the taxes and duties that they pay.


If people are caught living beyond their means, they should be made to repay taxes and penalties, forfeit their assets, and if it's not enough, the Reconstruction of Indebtedness Act must apply to delinquents.


5. Our government must do JORC reports to quantify our retrievable gold and mineral reserves, use those reserves as backing for our currency, and collateral (as oil countries do) to raise capital for infrastructure projects and job creation, on global financial markets.


6. The government must get Fidelity Printers and Refinery recertified once again as a producer of certified bullion, so that we can leverage our gold at 1:10 on financial markets. We probably need a new Bullion Market in China and Hong Kong, away from the manipulated London Bullion Market Association led by price makers who don't produce gold.


7. The government must resume gold exports to Dubai once again to inject no less than US$50 million/month to support the system. This is because the country still needs US dollars to import fuel and medical supplies.


8. The government must incentivize the reinvestment of the vast amounts of US dollars people hold under their pillows, into a resource and agriculture-driven Victoria falls stock market. This will help to put the dead capital under people's pillows to work.


9. The government must also begin to negotiate new fuel supply contracts with Russia, Iran and Dangote Refineries. This will allow them to pay for fuel in other currencies besides the destructive US dollar.


10. Our government must advance AFCFTA by importing African-made cars like Zimbabwean/South African Mureza, Nigerian made Innoson and Ghana's Tatanka. These cars can be paid for using African currencies instead of importing expensive US dollar-priced Japanese models.


11. The government must arrest those who obtain dollars from the Reserve Bank without following procedures.


The Zim dollar is weak due to sanctions, but also self-sabotage and self-hate. Zimbabweans need to stop hating what is theirs and start thinking about their country's welfare instead. We need a reorientation campaign to change our self-hate mindset.

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