Mushayavanhu flips on World Bank role in Zimbabwe’...

Mushayavanhu flips on World Bank role in Zimbabwe’s flailing new currency

Nyashadzashe Ndoro

Zim Now Reporter

In a confusing turn of events, Reserve Bank of Zimbabwe Governor, Dr. John Mushayavanhu has contradicted himself within a week on the involvement of the World Bank in the development of the country’s new structured currency, the ZiG.

On April 22, 2024, Dr. Mushayavanhu stated: “We also didn’t know much about a structured currency. We got a consultant from the World Bank. Who came to us? And a lot of the things that you’re seeing about the structured currency actually came from the World Bank.”

However, on April 29, 2024, he backtracked on his previous statement, claiming: “I heard yesterday that people were now saying the structured currency that we introduced was given to us by the World Bank. That is not true. We got a consultant to work with us by [sic.] the World Bank who assisted us in getting further information on the structured currency and that enabled us to refine our thoughts on that currency.”

This contradiction has sparked outrage from political figures and economists alike.

They argue that the conflicting statements from Mushayavanhu created confusion and uncertainty regarding the involvement of the World Bank in the ZiG. The incident raises concerns about the Governor’s communication skills and its potential negative impact on public trust in the new currency.

Former Cabinet minister Jonathan Moyo said instead of owning up to his error and taking responsibility, Mushayavanhu has chosen to contradict himself, causing further confusion and erosion of public confidence.

He argues that it would have been prudent for him to admit his mistake, clarify the situation, and provide a clear direction forward.

Moyo said Mushayavanhu’s actions have resulted in a loss of credibility, making it challenging to implement effective monetary policies and gain public trust in the new currency.

“You are a walking disaster and a proverbial goner, if you are a top technocrat at the highest echelon of a key and strategic institution like the RBZ, and you find yourself publicly denying your very own words, hardly a week after you uttered them in public, and after those words were widely discussed and debated in public while you remained silent.

“Hence, it is a terrible and indefensible way for RBZ Governor, Dr John Mushayavanhu to needlessly and recklessly score successive own goals one after the other, a week apart, by blatantly contradicting himself and saying opposite things about one and the same thing, with the result of losing the plot so fast by being too fast with the truth; to the detriment of the power of his word as Governor of the Central Bank, and with the consequence of squandering public trust at a time when he should be speaking no mumbo jumbo politics, and doing monetary policy to win the much needed public confidence in the new national currency, the ZiG,

“It would have been prudent for Dr Mushayavanhu to admit and own his error, take full responsibility for it and make a clear statement on the way forward; regarding his earlier remarks on 22 April 2024 that much about the ZiG as a structured currency ‘actually came from the World Bank’; ostensibly because the RBZ ‘didn’t know much about a structured currency,” he said.

Fadzayi Mahere, a former MP for Mt Pleasant, questioned Mushayavanhu’s credibility, stating: “Well, if his facts can change so acutely in the space of just a week, can we have confidence in anything else that he says? Quite frankly, it’s giving chaos.”

Economist Gift Mugano offered a solution, suggesting: “I suggest that the Governor urgently set up a robust public relations department and his office must stop direct engagement with the public until he has the requisite skills to do so. He must undertake training on public engagement.”

Journalist Hopewell Chin’ono highlighted the importance of clear communication from central bank officials.

“This is the reason why central bank governors only speak when it is necessary and why they mostly rely on their communication teams ...The potential impact of a central bank governor's words on people's wealth and welfare requires them to speak tactfully.”

Meanwhile, the ZiG banknotes and coins are now circulating in the market following their rollout on Tuesday morning by local banks.