China plotting new International currency for Zimbabwe?
by Itai Mushekwe
07 Oct 2016
COLOGNE – In what appears to be a carefully calculated political move set to crystallize China's influence in Africa and Harare, Beijing is reportedly plotting to help President Robert Mugabe's administration to unleash a new International Zimbabwe currency, backed by it's incalculable gold reserves, Spotlight Zimbabwe reported.
In 2014 this reporter, wrote a report in which the idea for a gold-backed currency was first discussed in private, between Mugabe and fallen Libyan leader Muammar Gaddafi, on the side-lines of the inauguration of South African leader Jacob Zuma, in Pretoria in 2009.
Gaddafi wanted a common gold currency for the whole African continent, while Mugabe had proposed that it was better for the African Union (AU) member states to introduce the gold standard money individually, before announcing one common currency at a later stage so as to throw International financial players into confusion.
Although no time frame has been given for the issuance of the secret money, which is expected to eventually replace the Reserve Bank of Zimbabwe (RBZ), Bond Notes coming into circulation this month and pegged at par with the US dollar, information at hand suggests that China's respected party elders, have been silently discussing the matter with Mugabe's party for decades, and want to also provide collateral using their country's economic might for the currency issue in exchange for about 50% of the country's sovereign mining rights.
Chinese elders usually retain great influence over decisions and government appointments long after they officially step down from power. They are a very elite confederacy, privileged and pampered at retirement. A BBC report states that, they are guaranteed bodyguards, special housing, secretaries and drivers, as well as access to restricted documents and information.
Zimbabwe adopted the US dollar and South African rand in 2009 after stratospheric inflation wreaked havoc to the economy, rendering the local currency worthless.
Central bank chief, John Mangudya, has said the move will ease current cash shortages, and that as government: "We anticipate by the end of the year $75m (in bond notes) will be in the market."
According to the website Dinar Chronicles, which reports on global currencies, in its recent featured post on Zimbabwe, on September 23 2016, there is speculation that Russia is also ready to support the International Zimbabwe currency, and that the development will see Harare becoming an important economic and political player on the continent in the years to come, when the currency is finally introduced.
Moscow has already invested billions of dollars into a platinum mining project in Darwendale, which is set to become Zimbabwe's biggest upon completion. Russia's thirst for the resource has been linked to her growing weapons and arms industry, with the country already lining up to acquire some military trucks, helicopters and other consumables for the army.
Below is an extract of the Dinar Chronicles posting:
– A population of 13,000,000
– Fluent English speaking nation with a very well developed educational system thanks to British rule for 130 years.
– Small, but effective domestic military to maintain order.
– Stable government leadership since 1980.
– Very low operational overhead.
– No sovereign debts owed of any kind
– 100% clean balance sheet.
– Ancient relationship with sovereign families around the world, specifically Chinese Sovereign Families.
– 2008-09 Zimbabwe bond/currency debt was claimed and will be reconciled by the Chinese Sovereign (Elders) with their incalculable gold reserves.
– Chinese Sovereign (Elders) are also collateralizing a new Zimbabwe international bond/currency issue in exchange for 50% of all sovereign mining rights.
– Unusually abundant reserves of in-ground natural resources, that include: gold, silver, copper, palladium, lithium, magnesium, coal, chromium ore, asbestos, nickel, iron ore, diamonds, precious gemstones, vanadium, tin, platinum group metals and all rare earth elements.
– Dozens of international investment partners highlighted by strong economic and military powers such as China, Russia, Germany, Switzerland and South Africa.
– New international headquarters of the African Union with the fastest growing business sector in all of Africa.
– High altitudes provides lush vegetation, but the low lands have also fertile soil because of unique underground aquifers that make Zimbabwe the agricultural leader of Africa.
So because all this above is irrefutable fact, how can newly issued Zimbabwe sovereign bond/currency backed by Chinese gold and the Russian military not be in the four digit territory?
Zimbabwe per capita one of, if not the, wealthiest nations in the world. It would stand to reason then that their new bond/currency would simply reflect their nation's truth.
Both the Chinese and Russian Embassies were not reachable for comment yesterday. However a Zanu PF official close to former RBZ governor, Gideon Gono, said the issue of the Chinese backed currency is not new and that this could be the reason Zimbabwe has delayed introducing her own home-made currency.