PORT ELIZABETH – Johannesburg-based businessman Frank Buyanga has urged Zimbabwe to introduce a gold-backed currency to curtail the economic decay the country faces.
The businessman says with the gold standard monetary system Zimbabwe’s currency will be directly linked to the yellow metal and this will increase the trust necessary for successful global trade.
Zimbabwe’s economic crisis has taken a turn for the worse. Investors were already fearing a repeat of the 2008 meltdown, which threw the country into one of its worst economic crises.
The Zimbabwe government this week announced it would print more cash to increase liquidity.
Last week, the central bank said it would introduce a Z$2 coin and Z$2 and Z$5 notes to “boost the domestic availability of cash for transaction purposes through a gradual increase in cash supply over the next six months”.
Now Buyanga, founder of the Sandton-headquartered African Medallion Group (AMG) – which is in a coin dealer agreement with the South African Mint Company, a subsidiary of the South African Reserve Bank – says his company has capacity to launch the new gold-backed currency.
“I am writing this letter requesting that you allow us (AMG) to create a formal (gold backed) currency that will be used as legal tender in Zimbabwe. This will be of great relief to the economy and the people of Zimbabwe,” says Buyanga in his letter to Zimbabwe Reserve Bank governor John Mangudya.
He says given the situation in Zimbabwe, gold is more acceptable as a form of currency by combining its appeal as a store of value and a much more efficient medium of exchange.
“My executives are immediately available to start discussions on the creation of the new currency. We have done extensive research and are convinced it’s time for us to introduce our gold-backed currency in Zimbabwe. Every Zimbabwean is a shareholder in the progress of their nation.”
Mangudya couldn’t be reached for comment by the time of publishing.
Buyanga concludes saying his team is “ready for this and willing to share the framework we envisage for a better Zimbabwe”.