Lawyer Tendai Biti, former finance minister, speaks to journalists outside Zimbabwe’s High Court in the capital Harare. File photo: REUTERS/Philimon Bulawayo.
Tendai Biti, Former Finance Minister and current MDC AllianceNational Vice Chairperson has commented on the introduction of the RTGS dollar and floating of the exchange rate.
He’s called Dr. John Mangudya a thief.
Mangudya is a thief because he has effectively devalued people’s salaries to the extent that if you earn $500, it means you now earn $100. There are going to be implications on inflation and there is going to be an impact on fuel prices and the economy, electricity costs, and there will be shortages at supermarkets.
Further floating the exchange rate and retention of the bond note will guarantee the continued existence of corruption in this economy. Zanu PF elites will continue raiding the RBZ for cheap foreign exchange, which they will arbitrage.
Liberalising or floating the exchange rate, without ring-fencing RTGS balances, will have the disastrous consequences of devaluing people’s balances and floodgates of litigation will open. Only Parliament can float or liberalise the exchange rate.
The RTGS dollar is a lot of rubbish, anything short of demonetising the bond note will bring futile results, and there is need for dollarisation.