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The strides that have been made in encouraging the use of plastic money risk being undone by these so-called discounts since its now more costly to use soft money as one is charged twice – by the bank for transacting on their platforms, and by sellers, for paying them using soft money!

Trevor Shiri Correspondent—

Zimbabweans are a curious lot. They regularly click the self-destruct button thinking they are “fixing” Government by sabotaging initiatives aimed at easing the cash crisis – as indeed other socio-economic challenges – that the country graples with.It is a fact that Zimbabwe adopted a multi-currency regime, where a cocktail of currencies, mainly the United States dollar, the British pound, the euro, the Chinese yuan, the South African rand and the Botswana pula, as well as the bond coin, are used as media of exchange at the prevailing market-driven international exchange rates.

It is a fact that since the US dollar is more the lingua franca of currencies, it has assumed a dominant status in the basket, overshadowing other currencies.

It is equally a fact that all these foreign currencies are not minted in Zimbabwe, yet the US dollar is being unwittingly exported out of the country on account of Zimbabwe being a net importer.

The foregoing layman’s analysis has resulted in liquidity challenges in banks which are now failing “to pay the bearer on demand”. Depositors are failing to access their money. Cognisant of this real and present predicament, Government has gone on an aggressive education campaign, educating the banking public on the benefits of using soft money in the form of swipe machines, the Real Time Gross Settlement (RTGS) and Mobile Money Transfers (MMT) to settle transactions.

After much resistance, the banking public has now embraced the use of soft money to transact. Lo and behold, the ever-conspiring Zimbabweans have developed a self-defeatist attitude, effectively pressing the proverbial self-destruct button by levying a penalty for using soft money which is cleverly disguised as a discount, incentivising those using cash to transact.

What do I mean, you might be wondering dear reader? Last week, I was in Bulawayo and my BMW 5 Series burst a front left shock absorber. I decided to go to a shop which sells car spare parts. I enquired on the price of one front shock absorber and was told it was $120. I gladly pulled out my debit card to pay and the cashier told me, “Hold your horses: if you are using the swipe machine, it’s $140.”

I was stunned!

The cashier politely pointed to a sign on the counter saying that the shop gives a 20 percent discount for cash transactions. Bemused as I was, I told him that this was a travesty since I did not want a credit transaction and wanted to pay cash. Both hard and soft money instant payments are in effect cash payments. I ended up paying the $140 since I needed to travel back to Harare.

Back in Harare, some service stations are now also offering an ostensible discount for customers who pay cash for fuel, while those using soft money buy at a higher price. All this is happening at a time Government is on the verge of introducing bond notes to alleviate the cash crisis, which anti-Government organisations and political parties are fighting tooth and nail to derail and sabotage through frivolous and vexatious lawsuits, as well as demonstrations and misinformation campaigns.

The so-called discount for cash buyers is a euphemism for penalty for using soft money. This creates a parallel pricing regime for the same product. In simple terms, a loaf of bread costs $1 when using cash, but $1,20 when using soft money!

What is the intention here?

Simple! To create more demand for cash in banks which are already battling to honour demanded cash withdrawals due to a scarcity of US dollars. Everybody wants the cheapest product, hence, naturally, Zimbabweans will continue to queue at banks, while those with the currency will not deposit it, worsening the cash crisis. Money needs to circulate, but now it is not, at least in our curious circumstance. The idea is to psyche up Zimbabweans to rise against Government.

To add salt to injury, the strides that had been made in encouraging the use of plastic money have been undone by these so-called discounts since its now more costly to use soft money as one is charged twice – by the bank for transacting on their platforms, and by sellers, for paying them using soft money!

At this rate, without being alarmist, these regime change proponents, masquerading as business people are likely to also introduce a third tier “bond note” price for products, especially if one takes into account their fervent lobbying against the introduction of bond notes. Most likely, a loaf of bread would cost US$1 for cash, $1,20 for soft money and $1,50 for bond notes.

A black market is already subsisting in our midst. What kind of market-driven economics are we witnessing unfold before our own eyes? It sure looks more to me like its jungle economics. Why is the Reserve Bank of Zimbabwe (RBZ) not nipping this egregious crime against the populace in the bud?

Hapless Zimbabweans just want a medium of exchange to transact daily. They do not need to be penalised for transacting using soft money, or even bond notes. This is an unwanted reality knocking on Zimbabwe’s door. If these opportunistic vultures, circling on people’s money are charging a penalty for US dollar-denominated soft money, what penalty will they charge for the bond note? Your guess is as good as mine.

Zimbabweans are at war with themselves – unnecessarily and fatally.