The media is awash with news today that the announcement by Finance Minister Mthuli Ncube that Zimbabwe is introducing a new currency in the next 12 months has triggered panic within the market.
Ncube last week told Bloomberg television that Zimbabwe would be introducing a new currency but refused to give a date.
“With currency reforms you should never be precise but by saying 12 months I am preparing minds, I am preparing your mind so it’s coming,” he said.
Ncube, however, does not seem to be preparing minds. Instead, he has been accused of creating panic.
While the coming of a new currency might be good news for speculators who are always looking to make money from nothing- and unfortunately this includes so-called businessmen who I am told phone contacts in Harare each morning to find out the going black market rate so that they can adjust prices accordingly- Zimbabweans must ask themselves: what difference does Mthuli Ncube’s announcement make?
What new currency?
What currency are Zimbabweans using right now?
Did Mthuli Ncube not state categorically that currency reform had started way back in October when the central bank reintroduced foreign currency accounts?
So why are people panicking when they have been using a nameless currency since October and Mthuli Ncube only wants to give it a name?