Is Zimbabwe zigzagging into further currency chaos?

Mr Mushayavhanu struck a defiant attitude in early April when introducing the gold-backed currency, saying it was done on World Bank advice.

“If you’re going to blame me, you’re actually blaming the World Bank,” he said, urging Zimbabweans fed up of seeing their money disappear from one day to the next to have patience.

“Maybe they didn’t advise us properly. And if they did not advise us properly, it’s fine. Let’s refine it.”

But given that this is the sixth time the local currency has changed in 20 years, Zimbabweans’ lack of confidence is understandable.

The Zimbabwe dollar, whose highest denomination at one time was Z$100 trillion, has morphed into bearer cheques, agro cheques, RTGS and bond notes.

A local independent Sunday paper, The Standard, bemoaned the lack of publicity over the sudden currency change to Zigs as phone companies, supermarkets and public transport all ceased to accept the previous incarnation, bond notes, as legal tender.

Tourists have found themselves unable to make payments by Visa as the uncertainty over the Zig’s true worth has rendered their cards unusable while the recalibration continues.

“If the Zig doesn’t go the same way as the RTGS, bearer cheques, agro cheques and bond notes that came before it, then it would be a plus for Zimbabweans who have in the past seen their entire savings wiped out by inflation,” the paper’s editorial surmised.

Yet you can see why businesses are reluctant to deal with it.