Gono extends currency deadline & announces Project Sunrise 2

By Tererai Karimakwenda
25 August 2006

Three days after the deadline for converting old currency to the new notes passed, Reserve Bank governor Gideon Gono has issued an interim review of the implementation of his so-called Project Sunrise. Three zeros were removed from the old currency in line with his Monetary Policy Review Statement of July 31, 2006. And Zimbabweans were given only 3 weeks to convert their money or lose it. Gono claims the campaign was a success, but many in rural areas did not have enough time or resources to make it to the banks and there were reported shortages of the new notes. Police and youth militia manning roadblocks were also accused of stealing money. On Friday Gono extended the deadline to September 2nd for reported rural cases and special situations. But agents will be going to these selected cases and will require proof. Is this effort too little too late?

The statement said: “With effect from Monday, the 28th of August, 2006, Reserve Bank teams will revisit reported cases which were not fully covered in the rural areas to carry out a final Mop up Program of the old bearer cheques. The Mop up Program will run through to end of day on Saturday the 2nd of September, 2006.”

Gono admitted the campaign met with fierce resistance and that he was threatened with physical harm as well as death. But he also claimed he met with incredible national excitement, patriotic enthusiasm and encouraging cheers from the man and woman in the street. Our contacts around the country have been reporting otherwise. There was much confusion as many shops refused to accept old notes ahead of the deadline. Long queues were seen outside every bank and many people slept in queues desperate to get rid of their old bearer cheques before the deadline. There were also many reports of abusive searches at roadblocks and from women who say they were strip searched by the youth militia who were assigned to work with RBZ teams.

In his statement Gono claimed the operation received immeasurable support from War Veterans and leaders and members of Zimbabwe Congress of Trade Unions (ZCTU). He said untold support and messages of encouragement came from teachers, nurses and doctors, civil servants, political parties, students and civic organizations across the country, and Zimbabweans in the diaspora. But we interviewed many civic organisations and religious leaders as well as Zimbabweans in the diaspora who criticised the whole exercise as a waste of resources and far from a solution to the economic crisis. There were also several demonstrations in the country against the currency conversions.

According to the statement Z$35 trillion (old value) was accounted for out of about $45 trillion (old value) currency that was in circulation at the time of launching Project Sunrise. This left a total of balance of $10 trillion (old value) or 22% of the currency unaccounted for.

Finally Gono announced a follow-up to Operation Sunrise. His statement said: “The aspect of Project Sunrise implemented over the last three weeks was only the first phase of currency reforms to be undertaken by the Monetary Authorities. A sequel is in the offing but I cannot give further details save to emphasize that there is definitely going to be a follow up phase. Next time round, the implementation process will be short and, therefore swift. It will require less than 24 hours notice and will have much tighter cash limits for allowable deposits.”

Zimbabweans are bracing for more chaos!