I AM amazed that the authorities and the media have awoken to the proposal to lop off zeros from the local currency, “Local currency set to lose three digits”, (Zimbabwe Independent, July 21).
I am particularly amazed tha
t this proposal is being mooted now when last year I proposed the same and invited comments from the finance gurus and regulators. None came forward while some dismissed me after noticing that I was not an economist.
I highlighted the argument that the numerous zeros are deadweight which gives unnecessary head-aches and accounting challenges to firms and individuals as the Zim dollar is only used in Zimbabwe and nowhere else.
I engaged some people in the diaspora but they all told me it was “bookish economics” which did not bear resemblance to reality on the ground.
The fraud cases and mistakes spawned by these chains of zeros have seen businesses and individuals incurring huge losses. I hope the relevant authorities will take urgent steps to lop off the zeros.
I am not advocating a revaluation of our dollar but simply stating that the Zim dollar is meant for internal trade as the chain of zeros does not change the value of the money.
What I mean is the income, savings and the cost of goods and services when both are slashed by the same digits, saves a lot in terms of the number of notes to be used which are also expensive to print.
The risks of mistakes will be reduced. So will be some common thefts/robbery as people will easily carry around their money and avoid challenges posed by the existing accounting software.
This is an extraordinary situation which needs extraordinary measures, Governor Gideon Gono always reminds us.
He should thus take that extraordinary step and spare us the trouble of carrying around sacks of useless, deadweight zeros.