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Chiwenga misleads nation about origin of bonds – The Zimbabwe Mail

Chiwenga

VICE PRESIDENT Constantino Chiwenga left the nation in a state of disbelief a few days ago as he blatantly misled the people, rewriting Zimbabwe’s well-documented monetary history, claiming that the now abandoned bond note was a Rhodesian monetary initiative.

BRENNA MATENDERE

Officially opening the International Business Conference at the just-concluded Zimbabwe International Trade Fair in Bulawayo on Thursday, Chiwenga said: “The ZiG is expected to provide a lasting solution to hamper inflation expectations, which is critical for stability.” sustained prices and exchange rates in the economy. . Given these unlimited benefits, I call on the public, the private sectors which are in the majority here, including households, workers and businesses, civil society and the international community, to fully adopt and support the Zimbabwe gold currency ”.

Chiwenga added: “We have removed the link that we had inherited from the Rhodesian era. After declaring the UDI, they were sanctioned by the United Nations Security Council. That’s why they came with the bonus. The link did not come with Zimbabwe. It came with Rhodesia. It was the Rhodesian bond you used to see. So the link disappeared and now we have our Zimbabwean currency. Support it”.

Checks of Zimbabwe’s well-documented monetary history show that this is clearly false and misleading. Rhodesia had no bonds, but pounds and then dollars. There was no currency called bonds between 1965 and 1980 in Rhodesia. Or any time before that. The bonds were first introduced in Zimbabwe in May 2016 by the Reserve Bank of Zimbabwe and expired on April 5, 2024.

The Zimbabwe dollar was introduced in 1980 and abandoned in 2009 following the economic crisis and hyperinflation.

There have been six variations of the local currency that were affected by exchange rate volatility and rampant inflation, exacerbated by a prolonged economic crisis and macroeconomic instability.

The local unit was demonized in 2015. The Zimdollar was later revived in 2019 after 10 years, but collapsed earlier this month when the new currency, ZiG, was introduced on April 8, 2024, marking its end.

ZiG will operate on a multi-currency system that has been legislated until 2030. The currency of Rhodesia after the Unilateral Declaration of Independence of 11 November 1965 by Prime Minister Ian Smith was the Rhodesian pound.

The Rhodesian pound was subdivided into 20 shillings (100 cents). One shilling was equivalent to 12 pence. Therefore, one pound was equivalent to 240 pence.

On 17 February 1970, the Reserve Bank of Rhodesia introduced new banknotes in denominations of 1, 2 and 10 dollars, less than a month before the declaration of a republic on 2 March 1970, following a major diplomatic dispute. with Britain for majority rule in the British colony reeling from a fiercely devastating civil war, or a liberation struggle for blacks dominated by white colonial settlers since 1890. And $5 bills were added to the market in 1972.

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The Rhodesian dollar replaced the Rhodesian pound at a rate of 2 dollars to 1 pound (1RP: R$2). The dollar proved to be a strong and resilient currency as it traded at par with the pound sterling.

However, between 1970 and 1980 the Rhodesian dollar was not a fully convertible currency, although it was used in South Africa, Botswana, Mozambique, Namibia and other countries. Its exchange rate was therefore not a reflection of Rhodesia’s underlying macroeconomic fundamentals.

The Reserve Bank of Rhodesia replaced the Bank of Rhodesia and Nyasaland on 1 June 1965 and made the pound divisible into 20 shillings or 100 pence.

In 1980, when the conversion was made, the Zimbabwe dollar was valued at 1.47 US dollars, meaning it was stronger as it was on par with the British pound sterling.

Brief monetary history of Zimbabwe: – British currency, 1888-1940; – South African currency, 1920-1940; – Southern Rhodesia Currency, 1940-1956; – Currency of Rhodesia and Nyasaland, 1956-1964; – Rhodesia pound = (Rhodesian and Nyasaland pound) = 20 shillings = 240 pence, 1964-1970; – Rhodesian dollar = (0.50 Rhodesian pound) 100 cents, 1970-1980; and – Zimbabwe dollar = (100 cents), 1980 = 1 pound or 1.47 US dollars.

Source: Hawk News