FULL THREAD: Biti Says RBZ Auction System Is A Vehicle For Arbitrage
28 September 2022
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The auction system continues to be vehicle of arbitrage and rent behavior. Rigged rate of 1:621 still lags behind market rate of 1:750 .There is no answer except corruption as to why there is no free float of ZW$ Significantly allocations are decreasing to US$11m from highs of $50 m

The obvious deceleration of activity on the auction is explained by the increased energy in gold coins production. Gold coins are new form of arbitrage and looting .A bank heist serving to transfer resources from public coffers to cartels. As of 22 Sept 9516 coins sold for ZWL$9 b

Gold coins are being sold in local currency at a discounted rate that is 300% below market thus creating arbitrage This explains why 95 % of purchases are in ZWL$. The @ReserveBankZIM has spend roughly US$ 18m in buying 9516 coins which it has sold at around US$10m. This is THEFT

For a country without any reserves to back its currency&current account gold coins are zany The suggestion that they are containing inflation is also fiction. Official inflation figures remain above 280% . We restate that this economy needs genuine structural reforms not mascara

We restate that the solutions are simple , dollarize, float the ZW$, remove export surrender requirements, pay workers US$ , restore pensions, deal with corruption, pursue fiscal consolidation. Fund social services. Above all attend to POLITICAL REFORMS & allow a free&fair election