Mnangagwa ally blames cash crisis on US sanctions

Mnangagwa ally blames cash crisis on US sanctions
Published: 15 December 2017 (170 Views)
PROPER banking services will return after the Zimbabwe Democracy and Economic Recovery Act (Zidera) has been removed, opening lines of credit, Finance deputy minister Terrence Mukupe said yesterday.

Zidera was passed by the United States Congress in 2001 to provide for a transition to democracy and promote economic recovery in Zimbabwe.

Responding to a question on when the cash crisis would be resolved at a currency dialogue series hosted by the Econometer Global Capital, Mukupe said there were no specific timelines.

"No one can be able to put timelines on it. I know what the problem is. You know the solutions that we are trying to put in place to address that. So for you to ask us to give you a specific time as to when this is going to happen, no one is able to do that. You saw the presentations that were being done by some of our colleagues that sanctions will be in place until elections are held. You know for a fact that as long as Zidera is there, there is no way we are going to have a proper banking system in Zimbabwe because we need those lines of credit," he said.

Section 4(2)(c) of Zidera stipulates that until the US President makes certification, the Secretary of the Treasury shall instruct the US executive director to each international financial institution to oppose and vote against any extension by the respective institution of any loan, credit or guarantee to the government of Zimbabwe; or any cancellation or reduction of indebtedness owed by the government of Zimbabwe to the US or any international financial institution.

According to Zidera, the embargo will be removed once the rule of law has been restored in Zimbabwe, including respect for ownership and title to property, freedom of speech and association, and an end to the lawlessness, violence, and intimidation sponsored condoned or tolerated by the government of Zimbabwe the ruling party, and their supporters or entities.

In his inauguration speech, President Emmerson Mnangagwa promised to arrest the ongoing cash shortages in the immediate future, adding that the liquidity challenges must be tackled head-on and dealt with as a matter of urgency, as people must be able to access their earnings as and when they need them. Mukupe said there was a ray of hope as the new administration was beginning to receive support from China, Comesa and Afreximbank, adding that the US government was engaging, albeit, with a wait-and-see attitude.

Sehliselo Mpofu, director of the macroeconomic management programme at the Macroeconomic and Financial Management Institute said Zimbabwe would perform better using its own currency.

Mpofu, however, cautioned that the Zimbabwe dollar cannot be reintroduced without addressing the economic fundamentals.

She said the way Zimbabweans were treating bond notes shows they are not confident with the government systems.

Former Zimbabwe National Chamber of Commerce president Oswell Bimha, said the central bank was warned against introducing the bond notes, as they chased away good money.

Zimbabweans have been facing a cash crisis since last year with depositors failing to access their money from banks.

The crisis has seen the emergence of cash barons, who are selling cash at a premium.

Monetary authorities, however, say the economy was facing foreign currency and not cash shortages. It said the situation would be resolved once the country exports more than it imports.

- newsday

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

How much power do politicians possess and who gives it to them?

by Erick Matotoba | 20 July 2018 | 87 Views

What now comrades 2?

by Tatenda Magumise | 20 July 2018 | 98 Views

Govt is not influencing Zec: Mnangagwa tells the elders

by Mafu Sithabile | 20 July 2018 | 133 Views

The role of the Church in this election

by Erick Matotoba | 20 July 2018 | 68 Views

BREAKING: Undenge sentenced to five years in jail

by Byo24News reporter | 20 July 2018 | 114 Views

Mnangagwa's govt pressures Zesa to pay Chivayo $52m

by Staff reporter | 20 July 2018 | 110 Views

Army responds to farmer eviction story

by Staff Writer. | 20 July 2018 | 88 Views

Mnangagwa's nasty fallout with cleric

by Staff reporter | 20 July 2018 | 86 Views

Mugabe's son-in-law pocketing obscene salary

by Staff reporter | 20 July 2018 | 110 Views

Chamisa should now rethink its strategy

by Faith Zaba | 20 July 2018 | 71 Views

Zimbabwe judges, generals and post-coup dynamics

by Andrew Kunambura | 20 July 2018 | 68 Views

Chiwenga 'betrays' Zanu-PF, reveals open secret

by Stephen Jakes | 20 July 2018 | 102 Views

Mohadi returns from SA

by Stephen Jakes | 20 July 2018 | 46 Views

Chamisa vs Democracy

by Anthony Mukondo | 20 July 2018 | 65 Views

Zimbabwe postal vote row fuels political tensions

by Staff reporter | 20 July 2018 | 74 Views

July 30 election: Not free, fair or credible

by Ibbo Mandaza & Tony Reeler | 20 July 2018 | 72 Views

Mnangagwa govt hunts for $2bn funding

by Staff reporter | 20 July 2018 | 81 Views

Chamisa popularity shoots up

by Staff reporter | 20 July 2018 | 87 Views

WATCH: Chamisa after meeting Annan

by Ndou Paul | 20 July 2018 | 93 Views

Wimbo's followers will remain Zanu-PF supporters

by Staff reporter | 20 July 2018 | 69 Views

Two Zimra officials acquitted

by Staff reporter | 20 July 2018 | 63 Views

WATCH: Chigumba is not resigning as ZEC chairwoman

by Staff reporter | 20 July 2018 | 75 Views

Zimbabwe: Politics of false hope.

by Collen Madziva | 20 July 2018 | 131 Views

G40 elements working with MDC Alliance to derail elections

by Lloyd Msipa | 20 July 2018 | 305 Views

Mutare ready for Mnangagwa's 2nd coming

by Staff reporter | 20 July 2018 | 141 Views

Chiwenga salutes Crocodile Gang member Ndangana

by Staff reporter | 20 July 2018 | 174 Views

Dr Thokozani Khupe MDC-T makes fresh demands to Zec

by Staff Reporter | 20 July 2018 | 221 Views

Zanu-PF's Pemhanayi steps aside for Madiro

by Staff reporter | 20 July 2018 | 119 Views

'Studying for the Grave'

by Staff reporter | 20 July 2018 | 136 Views

Bantu buys Mutare City Rovers

by Staff reporter | 20 July 2018 | 119 Views