Economist Professor Gift Mugano has ended his self-imposed silence on Zimbabwe’s economic affairs, criticising the government’s proposed “structured currency” as a rehash of previous unsuccessful attempts.
Despite his previous vow to abstain from commenting on Zimbabwean economic matters, Mugano expressed his concerns in an interview with NewZimbabwe.com, highlighting several underlying weaknesses within the government’s approach.
Addressing inquiries about the potential effectiveness of the structured currency in alleviating the currency crisis, Gift Mugano dismissed the idea, arguing that it would not contribute to stability.
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He pointed to past initiatives such as gold coins, gold tokens, and the Afreximbank-backed bond note, all of which failed to achieve the desired stability.
Mugano emphasized the need for increased production, investments, and savings as solutions to Zimbabwe’s currency crisis. He stressed that a country’s currency strength is directly tied to its production capacity, underscoring the importance of savings and investments in fostering economic growth.
Reports suggest that the new currency may be introduced by outgoing Reserve Bank governor John Mangudya later this week, as per The Newshawks online publication.
