FORMER GOVERNOR OF RESERVE BANK OF ZIMBABWE, GIDEON GONO, CALLS FOR THE RETURN OF THE ZIMBABWE DOLLAR TO DEAL WITH CURRENT LIQUIDITY CHALLENGES
Dr Gideon Gono, who retired in December 2013, after a 10-year tenure as governor of the country’s central bank, the Reserve Bank of Zimbabwe and whose quasi fiscal activities saw the plummeting of the Zimdollar has rekindled calls for its return saying this was the only way to deal with the current liquidity challenges.
Addressing a Covenant Business Forum, Gono said the Zimdollar will be anchored on the country’s gold reserves and will circulate in tandem with the multi-currency regime.
“Zimbabwe needs to have its own currency to float alongside other currencies. Without our own currency we won’t be able to resolve the liquidity challenges we are facing.”
Gono said before the Zimdollar is re-introduced, sufficient guidelines would be needed and the currency will be backed by gold reserves.
“The currency will be gold backed and will be a return to basics. What is now required are the brains to securitize our $13 trillion worth of gold resource. At an extraction rate of 90 tonnes a year, the gold can last us 1,300 years. This would be a stable backing standard,” said Gono.
During Gono’s tenure Zimbabwe adopted a cocktail of currencies that include the US dollar, British pound, South African rand and the Botswana pula to stem the runaway inflation that had hemorrhaged the economy.