ZCTU Criticises New "Structured Currency" Launch
Zimbabwe Congress of Trade Unions (ZCTU) Secretary General Japhet Moyo has cautioned that the proposed structured currency is at risk of failure, citing the lack of consultation with key stakeholders by monetary authorities prior to its launch.
A structured currency is a unique type of money system that combines features from both traditional fiat currencies and commodity-backed currencies.
It’s like a blend of two worlds: part fiat (based on trust in government regulations and central bank policies) and part commodity-backed (linked to a tangible asset, such as gold).
The introduction of a structured currency is an attempt to address these issues and stabilise the Zimbabwe dollar.
However, economic commentators argue that people still need to trust the government and central bank for the structured currency to work effectively.
According to NewZimbabwe.com, Moyo asserted that past government interventions aimed at addressing persistent economic challenges primarily faltered due to authorities’ disdain for other crucial stakeholders. He said:
We have been there before – from agro bonds, bearer cheques, bond notes, RTGS, Nostro, ZWL, to Gold coins among other attempts to improve the economy and tame inflation to no avail. Once beaten, twice shy.
As most Zimbabweans are aware, since independence in 1980, Zimbabwe has implemented no less than 30 economic blueprints and these blueprints have failed to extract ourselves from the problems the country is facing.
In the process, Zimbabweans and workers have lost everything they have worked for their entire life – from pensions, insurance policies and savings.
Moyo criticised the government for failing to engage with labour on critical policy matters, asserting that national ownership of programs offers significant gains without any corresponding losses. He said:
What is unfolding in Zimbabwe is most worrying where the government has a silo mentality. How do we expect to succeed when programmes are being rolled out without stakeholder participation?
How can the government approve such a fundamental policy on currency without stakeholder participation and ownership?
What is the purpose of such high-sounding platforms like the Tripartite Negotiating Forum (TNF)? This “we all know it” syndrome must come to an end.
Meanwhile, the Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) on Thursday said the plan to launch the structured currency should be deferred until citizens are allowed to express their views on the matter.
More: Pindula News
