Abuni GAMA

Most economic crises are given a name, so academicians can write and easily make reference to the period in their papers and studies. Basically so history can be easily told about it.

The following are examples of economic crisis names from around the world/past.
1. Lebanese Liquidity Crisis (2020)
2. Chinese Property Sector Crisis (2020 - Present)
3. Covid Recession (2020)
4. Great Recession (2020)
5. Argentine Great Depression (1998 -2002)
6. Black Wednesday (1992)
7. Special Period in Cuba (1990-1994)
8. 1970S Energy Crisis
9. Wall Street Crash (1929)
10. Panic of 1991

In our case, what do we call it?
"The Oyol Depression"?

Zimbabwe Introduced a new currency called the ZiG (Zimbabwe Gold), the ZIG replaces the Zimbabwean dollar which has continued to lose its value, in some instances being refused by the general public.

What is unique about the new currency, for one it is backed by gold reserves. What does it mean when a currency is backed up by gold reserves? It is a standard monetary system in which the value of a country's currency is directly linked to gold. In this practice, countries agree to convert paper money into a fixed amount of gold. A country that uses the gold standard of conversion sets the price of gold, and then buys and sells gold at that set price. The advantage of using the gold standard is that it prevents inflation as the government and banks can control the supply of money, by reissuing money. It also stabilizes the prices of goods and the exchange rate. The disadvantage is you need to produce and have massive gold reserves to support such a trade.

In 2020, the government talked of ramping up gold reserves to cushion the South Sudanese Pound, one wonders what has become of it. For a country that is endowed with massive gold reserves and other materials, at the same time a country that relies on 90% of revenues from oil production and a country looking for ways to stabilize their currency and diversify their economy, it is about time attention is paid to the gold production and channelled through formal banking systems.

Could there be something to learn from Zimbabwe or are we banking our hopes for the oil to flow again, and for normalcy to return?

Happy International Women’s Day! Here’s to the women who inspire us daily with their courage, compassion, and unwavering strength. May you continue to lead the way and shine brightly.