Biti accused of spreading currency falsehood to cause economic instability

(FILES) In this file photo taken on June 01, 2018 MDC Alliance Spokesperson Tendai Biti speaks during a press conference during which he announced that Zimbabwe’s opposition parties are calling for electoral reforms ahead of the July 30 general elections and that there will be street demonstrations in the capital Harare on June 5. Senior Zimbabwean opposition figure Tendai Biti was arrested as he tried to flee to neighbouring Zambia to seek asylum, his lawyer said on August 8, 2018. Biti allegedly faces charges for inciting violence over the disputed result of last week’s elections. / AFP PHOTO / Jekesai NJIKIZANA

The Deputy Minister of Information, Publicity and Broadcasting Services Energy Mutodi has poured cold water on revelations by former Minister of Finance Tendai Biti that Zimbabwe would be introducing a new currency this week.

Mutodi accused Biti of sending false signals so as to send panic in the market.

“Hon. Biti has falsely claimed that government will be introducing a new currency next week so as to cause panic on the market.” Mutodi said. “The truth is the RBZ Governor is still working on the monetary policy. May the lawyer focus on what he knows best not economics.”

However former Chairperson of the Minister of Finance Mthuli Ncube’s short-lived communications committee William Mutumanje confirmed that the new currency is on its way.

“I can confirm its true New local currency on the way, there is a condition of securing reserves in place but I can confirm to you, it’s coming. Prepare yourself. At best they will delay, most likely not.” Lumumba posted on Twitter.

Earlier on Monday Biti was quoted saying, “The regime will this week introduce a new Zimbabwe currency not backed by any reserves and without the context of structural reforms which a prerequisite of currency reform .That move is pure undiluted insanity . An unbanked currency is just the bond note by another name.”

Zimbabwe has been using Bondnote currency which the government insist is equal to the United State dollar despite glaring signs in the market that the currency is pegged at 1:3 with the dollar.

In January the Minister of finance announced that he will be introducing a new currency within twelve months.