Nkanyezi Ndlovu, who identifies as an economist and development practitioner, argues that Zimbabwe’s use of the ZiG currency is more a symbolic gesture of sovereignty than a practical solution for economic stability. In his article, “Sovereignty Ego Maintaining Ailing ZiG,” he contends that the best remedy for Zimbabwe’s financial challenges would be to permanently adopt the US dollar or the South African rand. However, this view overlooks the essential link between currency sovereignty and national development.
To begin with, economists like Ndlovu might consider revisiting President Mnangagwa’s 2023 inauguration speech. In it, the President stressed the importance of a national currency backed by a robust productive sector as a cornerstone of sustainable development. “No country has ever developed without its own currency,” he remarked, underscoring that a nation’s progress relies on its control over its currency and monetary policy.
While adopting a foreign currency can temporarily ease inflation, it does not promote sustainable economic growth. For instance, China has strategically devalued the yuan to boost exports and drive economic growth, often clashing with the United States over this policy. Zimbabwe, by retaining its currency, seeks a similar advantage to sustain economic development through strategic control of its monetary policy.
Calls for re-dollarization, frequently pushed by opposition parties, ignore the risks of relying on foreign currencies. Full reliance on external currencies limits Zimbabwe’s capacity to manage its own money supply, making it vulnerable to economic shocks. Zimbabwe’s experience with the US dollar from 2009 to 2016 demonstrated these risks, as the country faced acute shortages of USD in banks, exposing the fragility of depending solely on a foreign currency.
For Zimbabwe, currency sovereignty is not merely about symbolic independence but about building a sustainable path toward economic self-reliance and resilience.
