Paul Nyathi|MDC National Deputy Chairman and former Finance Minister, Tendai Biti has described Wednesday’s monetary policy presented by the Reserve Bank of Zimbabwe governor John Magudya as a mere “dog’s breakfast. ”
In a social media post on Twitter in response to the central bank’s tactical reintroduction of the Zimbabwean dollar, Biti said the move will not be functional as the ruling ZANU PF lacks trust and transparency which are fundamental in the functioning of a formal economy.
Biti said the new Zim Dollar, introduced as RTGS Dollars will collapse and lead to hyper inflation, shortages and queues a situation Zimbabweans experienced in the years 2007 to 2014.
According to him the new currency lacks key fundamentals to give it value in the market such as market confidence and a stable macroeconomic environment.
“It is 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,” said Biti.
Mangudya delivered the monetary policy at the Reserve Bank of Zimbabwe on Wednesday and announced the immediate floating of the United States Dollar and creation of a new currency known as the RTGS Dollar as the highlights of the country’s new policy.
The presentation of the policy was delayed last week after Biti made premature declarations that government was reintroducing the Zimbabwean dollar. The declaration was heavily disputed by government.
Prior the presentation of the monetary policy, Biti insisted on the demonetisation of the Bond Note as the immediate first step forward.