Zimbabwe former Finance minister Tendai Biti blasts Mthuli Ncube over unrealistic measures

Zimbabwe former Finance minister Tendai Biti has lashed out at Mthuli Ncube over unrealistic economic measures announced Monday to maintain stability and confidence in the market.

Zimbabwe former Finance minister Tendai Biti has lashed out at Mthuli Ncube over unrealistic economic measures announced Monday to maintain stability and confidence in the market.

Tendai Biti, Analysis

Today’s presser was a tragic expression of the humongous levels of deceit, dishonesty, incompetence and hypocrisy of this regime.

It is not news that the multi-currency system will continue. Fact is the economy self dollarized a long time ago. Regime owes Zimbabweans an apology for 2019 fiction contained in SI 33 of 2019 and the botched de-dollarization process. Regime must genuinely compensate those who lost value in 2019 particularly pensioners.

Today’s announcement is an acknowledgement of failure & will not address hyperinflation, food shortages and poverty levels affecting our people.

The Willing Buyer Willing Seller (WBWS) principle will not work as long the Auction system exists. The auction system is a source of arbitrage and must be abolished forthwith. Further RBZ interference in the WBWS makes it dysfunctional. It is not a competent source of price discovery.

The WBWS exchange, like the Auction rate represents yet another rigged rate hence the huge difference between same and the rate in fourth street. The RBZ should have no role in determination of exchange rate. Truth is the Central Bank long outlived its usefulness and should be abolished.

It will not address the doctors and nurses strike nor low public wages eroded by inflation. It does not address skewered fundamentals and the disequilibrium in the economy.

Solution is simple. Use the US$ as a transitional mechanism. Float Zim$. Eliminate Export surrender requirements. Pay civil servants US$. Deal with debt burden. Deal with Corruption. Pursue fiscal consolidation. Fund the social sector and attend to Gross Capital Formation or just Resign.

  • Tendai Biti is a former Finance minister of Zimbabwe during the Government of National Unity (GNU) between 2009-2013.
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