THERE is a famous proverb which was coined by native American Lakota sages which says: “Force, no matter how concealed, begets resistance.”
It is in this light that we conjure the spirits of the long gone wise people to help us navigate this hostile world. And for us in Zimbabwe the Lakota sages’ wise words hit us like a runaway freight train when we reflect on the events surrounding our recently introduced Zimbabwe Gold (ZiG) currency.
We hear that Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu has threatened to rain fire and brimstone on the grocery retail sector or supermarkets which are charging their goods using an exchange rate higher than the official rate.
In an interview on one of the country’s radio stations, Mushayavanhu said: “You should report on all supermarkets that are not using the ZiG13,5 rate, but using a higher rate. We are not going to tolerate that. They are going to get their licences terminated.
“ZiG is going to be a stable currency and it is here to stay. Hang on to your ZiG and do not fall for unscrupulous people who want to exchange the currency at a high rate.”
While we perfectly understand where the RBZ governor is coming from, in that he is desperately eager to succeed where his predecessors dismally failed by making sure that the ZiG currency rides the storm. We are, however, worried that using threats and raining fire and brimstone on the supermarkets to stabilise the ZiG currency may complicate his mission.
Past experience has taught us that the use of strong-arm tactics to drive certain policies have begotten unexpected and unintended results.
Newton’s third law simply advises us that for every action there is an equal and opposite reaction, which in our case humbly informs us that it will not be surprising if the supermarkets resist, either covertly or overtly.
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So maybe, if we may suggest, the RBZ should first understand why the supermarkets are using an exchange rate which is higher than the official rate. Are the supermarkets doing this merely to profiteer or they have done some calculations and determined that the higher rates they are using will help to keep their businesses afloat?
Operating a business in Zimbabwe is not for the faint-hearted given the harsh economic environment prevailing in the country. So, we implore our dear governor to at least engage these supermarkets to understand their challenges before he decides to use force.
It is needless to remind our learned governor that force can drive many out of business and it would be an anathema for businesses to close in a country which is open for business.
Ever since the ZiG was introduced early last month, we never heard that the central bank governor has met the supermarket owners on a round table to hear their side of the story regarding local currency transactions.
The supermarkets could be jittery over the new currency because of past close shaves with insolvency after selling their goods in local currency which was perennially depreciating due to inflation.
Obviously, according to Mushayavanhu’s own words, the ZiG is still unstable, but we honestly do not believe that force and threats of inflicting hell on earth on anyone will help stabilise the currency. It may, in fact, rock the RBZ boat and destabilise the new currency.
