Farai Dziva|Opposition party Zimbabwe Economic Freedom Fighters has described as futile and suicidal the decision by Emmerson Mnangagwa’s government to abandon the Multi-currency regime.
See the EFF statement below :
As ZEFF, we will not standby whilst our country continues to be drowned in sorrow by a morally bankrupt and economically dysfunctional government imposed on our people by Zanu PF. We strongly believe that Zimbabwe, like every country, should have its own currency which enables its citizens to recognise their dreams, allows any decent government to provide services to the masses and allow the economy to strive on the basis of a free market economy with measured government intervention only when appropriate.
As ZEFF, we note that the current economic status in the country is not a stand-alone event, but a trail and collection of political and economic blunders perpetrated by the ruling party over the past 40 years.
The currency changes as happened on the 24th of June 2019 are therefore nothing but once again, a surprise assault on the helpless and poor Zimbabweans. As ZEFF, we believe the “writing is on the wall” once again, as it was over the numerous fiscal and monetary policy shifts and decisions adopted by this government that have struck once again.
ZEFF is on record that we support a mono-currency regime, a considered and balanced command/market economy through a Government mandate to create a sustainable economic environment that will enable a thriving and inclusive economy for a developmental state. We however completely differ with the ambush mechanics that the ruling party has employed since 1997 through this government. Such destructive, unplanned and un-co-ordinated tactics have not only engraved a stinking tendency of a government whose policy is determined by an overnight signature but further, over a decade, wiped out the economic value of our currency from the pockets of our people;
We believe such a currency adoption strategy is futile and geared towards tracking a straight-line back to the 2007/8 economic status which was characterised by empty shelves in shops, unprecedented inflation levels, shrinking GDP levels, unsteady fiscal and monetary policy, embedded corruption in government, and a hungry and unemployed population. Over a decade, our people have endured shock decisions and energy depleting fiscal and monetary policy decisions devoid of economic logic. Through-out this disaster, those that have benefited continue to trash the little that’s left of every country’s pride, its currency. We remind this government and its looters of its previous tactics that got us to where we are today;
In the hands of this government of Zanu PF, the uncontrolled printing of the currency, as characterised by the 1997 pay-out of ZW$4.2bn (USD300m) to the War Veterans, which wiped out 72% of the value of the Zimbabwean Dollar in the weeks that followed will once again, do the trick. This government couldn’t print the USD/Rand as it can with its own unbacked Bond/RTGS. They have grabbed the printing machine firmly in their hands once again;
The un-characteristic closure and shut down of forex accounts for companies in 2002, introduction of Managed Foreign Exchange Auctions System (“MFEAS”) in 2004, the introduction of the Tradable Foreign Currency Balances System (“TFCBS”) 2006 after the failure of the MFEAS, in the process replacing the dual exchange rate system with the Interbank rate which collapsed drastically. Our people will not be hoodwinked once again, into ploughing their hard-earned savings into look-alike pretend savings called the FCAs, only for this government to wake up one day and forcibly convert these to bonds/RTGS at forced rates once again;
The forced devaluation of the currency on more than 2 prior occasions (in 2000 and 2007) without achieving any meaningful reward to the masses. At each of these devaluations, the black-market exchange rate demanded 10 times further devaluation. We do not forget that in late February 2019 (only 4 months ago), the Bond note/RTGS was pegged at around an entry level of 2.51against the current 12.1 exchange rate to the USD (an average devaluation of 382% over the period. This dwarfs the two occasions above;
We do not forget that Zimbabwe created the first mass of Quadrillionaires in Africa and arguably in the world, who could not afford to buy a packet of condoms in the shops. How much more disgrace can this government dish out to our people;
The introduction of the Bond notes against the wishes of the people, and the supplementary introduction of the RTGS became a catalyst to a worsening Foreign currency crisis. This saw the expansion of mismatch between Money Supply and the supply of forex in the market. This was yet another failed attempt to control a politically induced foreign currency panic solution to an endemic political and leadership vacuum problem.
These induced changes, coupled with a number of overnight pronouncements over the past decade have literally destroyed our economy and in the process, robbed our citizens of a generation of state-driven poverty. We believe Winston Churchill had a reason to suggest that, “If you destroy a free market, you create a black market. If you make 10 000 regulations, you destroy all respect for the law”. This is yet another proof that our government has no solution for the economic problems it created. This is a pure example of Policy uncertainty, a haphazard approach to political economics and a sure way to punch in the final nail to the coffin of all Zimbabweans. In the next few weeks, Zimbabweans should expect to witness unprecedented changes to their lives, socially and economically;
The disappearance of commodities off the shelves of stores, resulting in fewer goods being chased by massive quantities of printed currency;
Inflationary pressures in the regions previously experienced at the height of Zimbabwe’s failed economy;
Consumption and corruption driven monetary supply through the printing machine without any foreign currency or gold backing to give value to the currency;
Diversion of the economic failures through orchestrated brutalisation of the masses who chose to voice against such;
Closure of factories, retail shops against the backdrop of forced price settings by a desperate state;
Long queues for basic commodities such as fuel, bread, cooking oil, meet, maize;
Devaluation of salaries, pensions and purchasing power in general;
Poor liquidity positions for companies which will effectively force closure of industries;
Potentially, a heavy-handed approach by the security cluster in con confisticating foreign currency from the black market.
ZEFF believes that even the most ill-equipped, ill-disciplined government worth the calibre of Zanu PF would have respected the suffering masses of Zimbabwe in its history of chronic failures and merely took its population into confidence before executing yet another ambush to their hard-earned savings. Whilst the intentions are noble and respected, the manner, behaviour and complete lack of consideration of the people, the markets, the business community and the few working-class citizens are left completely exposed.
This government needs to understand that, no amount of regulations will make “the value of a Donkey and a Cow equal overnight”. ZEFF believes a responsible and patriotic government would have, at the least;
Taken prudent steps to build Trust and acceptability of such a currency through a transparent and trusted process consultation process with various stakeholders such as Banks, Civic society, citizens, economic agents etc;
Provided confidence to the international community to obtain goodwill and display the seriousness of government to get this right;
Deliberate paraded of the currency fundamentals to the masses to build buy-in and confidence and avoid minimise disruptions in the financial sector through these massive economic shocks that everyone will experience;
De-link the new currency from the dirty bonds and RTGS and provide room for a clean break from the previous occurrences that Zimbabweans still;
Create a conducive environment in the market to support a sustainable economy through getting rid of corrupt officials at the Reserve Bank, clarification of fiscal policy certainty and equal implementation of the rule of law against corruption in the country;
Pronounce on the turn-around and support strategy to go alongside the implementation and adoption of local and neighbouring Southern African Development Countries as backers of guarantors of such a commitment;
Lastly and certainly not least, at least give it a name. Even the still-born are afforded the human dignity of identity to enable their souls to rest in peace. Even our dear President has no idea whether to call this new craze RTG, Bond, RTGS or Zim Dollar.
Kumhanya hanhakusi kusvika!!!!!!!!!
Issued by : The commander in-chief Innocent Ndibali
For any inquiries contact : Victor Mpofu, National Spokesperson
Cell Number : +263 77 194 3180 / +263 71 321 7854
Email : [email protected]
Twitter : @vnngwaladi
