Former Minister of Finance and Economic Development, Tendai Biti says Finance Minister Mthuli Ncube’s measures to stabilize the country’s local currency are desperate attempts which doesn’t work.
He says such measures also need parliament approval if they are to be implemented.
“Mr Mthuli s new measures are latest expression of a desperate regime arrested by a panic attack, schizophrenia & cluelessness.
“In the main they are illegal measures which require Parliament Not only that they reflect a cataclysmic fall out between the Central Bank & Treasury.
Biti adds that the country should have rather taken the dollarisation route.
“We have consistently argued that de-dollarization has failed & therefore the Gvt needs to dollarise while floating the ZW$.
“Anything short of this will not work We have also argued that the auction system should be scrapped & therefore reducing the auction to US$5m will not work,” he says.
The former Minister also points out that the country should replace the Reserve Bank of Zimbabwe with a currency board.
“We have also argued that the Central Bank has gone rogue and needed to be replaced by a currency board.
“The new measures will not stop
Reserve Bank of Zimbabwe from conducting quasi fiscal activities or its illicit gold dealings.
“Deeper reform is required. We have also
made it clear that Treasury has no powers of assuming any debt from anyone only Parliament has this power.Imposing on the tax payer RBZ debt is immoral and illegal.
“The RBZ over the years has been at the center of major extractive behavior including borrowings & quasi fiscal activities.
“Assuming RBZ debt without exposing it to an audit is therefore a grand fraud on the people of Zim.
“Truth is an economy can’t be run be sporadic, adhocratic statements made outside Parliament & oblivious to previous policy pronouncements. The market requires rules & certainty.
“We say to them again 1) dollarize and float Zim$2)scrap export surrender requirements & auction system 3) Pay workers & pensions in US$ 4)Pursue fiscal consolidation 5)Deal with corruption 6) Deal with infrastructure 7)Decarbonize. Most importantly have a free &fair election.”
Meanwhile, renowned world economic analyst Steve Hanke agrees with Biti that the country’s central bank needs to be replaced with a currency board.
Hanke says Finance Minister Mthuli Ncube should be charged for murder for sending the ZWD to its grave.
“Today, I measure Zimbabwe’s inflation at a stunning 791%/yr. THAT’S THE HIGHEST INFLATION RATE IN THE WORLD,” he said a few days ago.
“In Zimbabwe, the ZWD continues to be vaporized and inflation surges. The ZWD has lost 93% of its value against the USD since Jan. 2022. Zimbabwe must officially DOLLARIZE, NOW,” he said recently.