MDC slams RBZ currency moves

MDC slams RBZ currency moves
Published: 21 February 2019 (239 Views)
Zimbabwe has "de-dollarised through the back door," the Movement for Democratic Change (MDC) said on Wednesday after the Reserve Bank of Zimbabwe unveiled its delayed Monetary Policy Statement.

Reserve Bank governor John Mangudya announced that Zimbabwe, without its own currency for a decade, was allowing its surrogate currency, RTGS dollars, to float against other major currencies, abandoning an official but artificial parity with the United States dollar.

Banks will set the new exchange rate for the surrogate currency, which the RBZ hopes will address the country's worsening economic crisis.

Tendai Biti, the former Finance Minister and MDC MP for Harare East described the move as "disastrous".

"Modern functional States are founded on trust and transparency. That clearly is not part of the DNA of Zanu-PF. The regime today disingenuously and mendaciously de-dollarised the economy by informally re-introducing the Zimbabwe dollar now called the RTGS dollar through the back door," Biti said.

"It's a disaster to embark on currency reform in the absence of key fundamentals to back that currency. These include market confidence, reserves, a decent capital account and a stable macroeconomic environment. This is elementary."

Biti warned that instead of arresting economic decline, the RBZ move would create new "shocks", including hyperinflation.

"Regrettably, the economy now enters another period of self-induced shocks that will see salaries and values being devalued, hyper-inflation, shortages and queues. It's a dog's breakfast," the MDC deputy chairman said.

Zimbabwe has not had a local currency since 2009 when it abandoned the Zimbabwe dollar due to hyperinflation that reached 500 billion percent, according to the IMF. To curb the ruinous inflation, Zimbabwe adopted a multi-currency system dominated by the U.S dollar.

However, a shortage of cash dollars pushed the government in 2016 to issue a surrogate currency called bond notes, to trade alongside electronic money, which are funds electronically deposited into bank accounts.

Most Zimbabweans are paid electronically into their bank accounts, but they cannot easily convert those funds into cash.

National People's Party leader Joice Mujuru said on Twitter: "Since day one, I have said bond notes are not going to change the economic situation. I even went to the extent of approaching the courts. Renaming or revaluing the bond note and building policies to cover-up the same mistake won't help. Its back to the drawing board."


- ZimLive

Tags: MDC, Currency, RBZ,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Coltart defends Jonathan Moyo...fingers Chinamasa and Mnangagwa

by Mandla Ndlovu | 23 April 2019 | 85 Views

Harare City Council left with 100 million litres of water

by Mandla Ndlovu | 23 April 2019 | 58 Views

What can new league learn from the Australian NRL?

by Staff Writer | 23 April 2019 | 39 Views

The three biggest lottery wins in South Africa

by Staff Writer | 23 April 2019 | 60 Views

Of the Zimbabwe bird and political ignoramuses

by Nobleman Runyanga | 23 April 2019 | 76 Views

Call to arrest August 1 killer soldiers

by Staff reporter | 23 April 2019 | 109 Views

Mnangagwa's Zanu-PF to amend constitution

by Staff reporter | 23 April 2019 | 103 Views

Mliswa attacks journalists

by Mandla Ndlovu | 23 April 2019 | 71 Views

PHOTOS: Strive Masiyiwa meets Botswana President

by Mandla Ndlovu | 23 April 2019 | 95 Views

Mr Selo Nare's "Justice" must be Real Justice.

by Bhobha Mazhandu | 23 April 2019 | 58 Views

Jonathan Moyo fires shots at Mnangagwa

by Mandla Ndlovu | 23 April 2019 | 136 Views

POSA replacement Bill gazetted

by Staff reporter | 23 April 2019 | 67 Views

Fake money backfires

by Staff reporter | 23 April 2019 | 91 Views

WATCH: Historic ZITF opens

by Staff reporter | 23 April 2019 | 76 Views

Madlela to share stage with Shwi, Freddy in SA

by Staff reporter | 23 April 2019 | 57 Views

Border jumper jailed for stealing wheelchair

by Staff reporter | 23 April 2019 | 64 Views

Banks move to arrest card cloning incidents

by Staff reporter | 23 April 2019 | 84 Views

Family whips granny to death over witchcraft

by Staff reporter | 23 April 2019 | 71 Views

Triangle break Madinda's heart

by Staff reporter | 23 April 2019 | 77 Views

Zec warms up for 2023 polls

by Staff reporter | 23 April 2019 | 66 Views

Man fined for exposing genitals to minors

by Staff reporter | 23 April 2019 | 68 Views

Dembare fans demand coach's head

by Staff reporter | 23 April 2019 | 63 Views

Mnangagwa moves to slash bread price

by Staff reporter | 23 April 2019 | 105 Views

MDC congress: Does real democracy exist?

by Learnmore Zuze | 23 April 2019 | 52 Views

Easter Holiday accidents kill 24

by Staff reporter | 23 April 2019 | 57 Views

Of market forces and price hikes

by newZWire | 23 April 2019 | 58 Views

MDC seeks to close ranks in Bulawayo

by Staff reporter | 23 April 2019 | 61 Views

Mnangagwa, Chamisa to meet at Tsvangirai memorial?

by Staff reporter | 23 April 2019 | 112 Views

6 000 delegates for MDC congress

by Staff reporter | 23 April 2019 | 54 Views

War vets call for unity as economy bites

by Staff reporter | 23 April 2019 | 58 Views

Price madness: Manufacturers blame retailers

by Staff reporter | 23 April 2019 | 53 Views

Mnangagwa warned of brewing unrest

by Staff reporter | 23 April 2019 | 73 Views

Zanu-PF, war vets in fresh row

by Staff reporter | 23 April 2019 | 42 Views

Govt withholds teachers' salaries over protests

by Staff reporter | 23 April 2019 | 30 Views

Advanced Level Family and Religious Studies: Parables

by Brian Maregedze | 23 April 2019 | 53 Views