Zimbabweans are voicing discontent over the Reserve Bank of Zimbabwe’s (RBZ) reported gold reserves, particularly in light of the recent introduction of a gold-backed currency. Figures such as former cabinet minister Walter Mzembi are alleging significant discrepancies in gold declaration and shady dealings concerning the nation’s gold reserves.
This lack of transparency is further exacerbated by the controversial appointment of RBZ Governor John Mangudya to lead the Munhumutapa Sovereign Wealth Fund before a comprehensive audit of the gold reserves has been made public.
Mzembi is questioning the rationale behind Zimbabwe’s sale of its “national assets” without adequate local storage facilities for gold. He suggests considering traditional gold storage hubs like Switzerland and Dubai, as well as emerging markets such as Belarus, China, and the Middle East as potential destinations for Zimbabwean gold.
He asserts, “Today and in the future, we should aim to establish local storage facilities equivalent to colonial-era gold repositories or to the modern-day trade destinations of our gold, such as Belarus, Dubai, Switzerland, China, and other Middle Eastern markets. Why are we depleting our national resources without tangible benefits?”
The issue of illicit gold dealings has also been raised by former Mt Pleasant MP Fadzayi Mahere, who questions the potential impact of gold smuggling on the stability and credibility of the proposed structured currency.
To bolster confidence in the new currency, the government has disclosed gold reserves worth US$175 million, in addition to foreign currency reserves held by the RBZ and Treasury. RBZ Governor John Mushayavanhu has confirmed the verification of central bank assets, including 1.1 tonnes of gold and other precious minerals.
However, public outcry underscores a crucial obstacle facing the proposed gold-backed currency: trust in the system depends on transparent management of gold reserves. Without a comprehensive audit and resolution of concerns regarding mismanagement, the success of the planned currency may be in jeopardy.
