Breaking News

Of all the feeble excuses for imposing Z$ Minister Ncube's takes the biscuit - sanctions, very original too

by Patrick Guramatunhu
18 July 2019 | 4131 Views
Of all the feeble excuses proffered by this Zanu PF regime for ending the use of the multi-currency basket in favour of the local currency as the only legal tender; Minister of Finance, Professor Mthuli Ncube's excuse takes the biscuit! Sanctions!

"There were certain banks that were told to stop supplying US dollars to Zimbabwe because certain transactions would involve entities in Zimbabwe that are under sanctions.," he explained.

"CBZ was fined US$350 million for doing some transactions where they thought they were helping and we are still negotiating a way out of that liability.

"Therefore the more we used US dollar, the more we expose the transactors and businesses to fines."

China, South Africa and Botswana have not imposed any targeted sanctions on anyone or any company in Zimbabwe so why did the Minister end the trade in the US$ and British Pound and retained local trade in the Yuan, Rand and Pula?  




The truth is the regime hurriedly enacted Statutory Instrument (SI) 142 banishing the basket of other foreign currency as legal tender to impose the local currency as the only legal tender to forestall the growing trend by traders and workers refusing to be paid in the local currency and demanding to be paid in the stable foreign currencies instead. The local currency had been losing its value as inflation has risen from about 10% in January 2019 to 97% at the time SI 142 was enacted.

Having impose the local currency as legal tender, government has been able to meet its soaring expenditure by printing more money at a time when its revenue has been sinking because to reduced economic activity due to the savage up to 19 hours a day power cuts, cyclone Idai, drought, etc. Printing money has solved one problem but created an even bigger problem – it has fuelled inflation. Since the passing of SI 142 inflation has soared from 97% to 175%, almost double in three weeks!

The hyperinflation gene is out of the bottle, there is no putting it back! Zimbabweans remember only too well the hyperinflation of 2000 to 2008 when inflation peaked at 500 billion % and the local currency was not even the paper it was printed on, at Z$ 35 quadrillion (35x10^24) = US$1.00. Most economic activity seized, it was impossible to do business and be paid in a currency who value was disappearing like water poured in the desert sand. It was not worthwhile going to work, shop shelves were empty and finding enough to eat and other essentials was a nightmare. We are heading for those 2008 nightmare days again!

The Z$ was scrapped and the multicurrency as legal tender was introduced in November 2008 to restore confidence in a stable currency. One only hopes that sanity will prevail and the stable currency reintroduced long before inflation hit the dizzying height of 2008 and survival is once again near impossible!


Mthuli Ncube sanctions CBZ


Disclaimer:
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.

Source: zimbabwelight.blogspot.com

Comments

Latest News

Pastor defrauds congregants - A Pastor at Fountain of Life Ministry ha...

by Staff reporter | 25 August 2019 | 1 Views

Woman raped as lover flees - A GROUP of five men reportedly ambushed a...

by Staff reporter | 25 August 2019 | 1 Views

The science of winning by-elections - URBAN folks are shocked how and ...

by Michael Mhlanga | 25 August 2019 | 1 Views

Stay loyal to Dr Nkomo, vote Zanu-PF, says Khaya Moyo

by Staff reporter | 25 August 2019 | 1 Views

Duo in fake birth certificates scam - TWO people have been arrested in...

by Staff reporter | 25 August 2019 | 1 Views

Borehole drilling company dupes clients - MORE than a dozen Zimbabwean...

by Staff reporter | 25 August 2019 | 1 Views

John Nkomo Museum stalls due to funding challenges - FUNDING challenge...

by Staff reporter | 25 August 2019 | 1 Views

PSC revamps civil service training - The Public Service Commission (PS...

by Staff reporter | 25 August 2019 | 1 Views

Namibian expert raps MDC-Alliance - The MDC-A has become panicky as si...

by Staff reporter | 25 August 2019 | 1 Views

Chapungu humiliate CAPS United - Chapungu 4 - 2 CAPS UnitedCHAPUNGU an...

by Staff reporter | 25 August 2019 | 1 Views

Horror start for Rahman Gumbo

by Staff reporter | 25 August 2019 | 1 Views

The Chief can do no wrong

by L Dube | 25 August 2019 | 1 Views

Cambridge English On The Go - In the 20 odd years that I have been in...

by The Language Coach | 25 August 2019 | 1 Views

Mnangagwa's govt censures EU ambassadors

by Staff reporter | 25 August 2019 | 1 Views

How to think in Dark Times - "DO nothing but think" is a philosophical...

by Cetshwayo Mabhena | 25 August 2019 | 1 Views

Zanu-PF Zaka East candidate confident - ZANU-PF candidate for Zaka Eas...

by Staff reporter | 25 August 2019 | 1 Views

Kambarami frustrates Town Clerk again - BULAWAYO City councillors will...

by Staff reporter | 25 August 2019 | 1 Views

Electricity woes to ease as Zesa fixes station

by Staff reporter | 25 August 2019 | 1 Views

Banana's wife gets new wheels from Mnangagwa's govt

by Staff reporter | 25 August 2019 | 1 Views

Louis Mhlanga excited at Bulawayo return - SOUTH Africa-based jazz gui...

by Staff reporter | 25 August 2019 | 1 Views

We cannot afford to have idle, unproductive land - Mnangagwa

by Emmerson D Mnangagwa | 25 August 2019 | 1 Views

Mnangagwa to meet Shinzo Abe - PRESIDENT Emmerson Mnangagwa will this ...

by Staff reporter | 25 August 2019 | 1 Views

More flights for Bulawayo - THE Government has increased flight freque...

by Staff reporter | 25 August 2019 | 1 Views

'Austerity ends in 2019,' says Muthuli Ncube

by Staff reporter | 25 August 2019 | 1 Views

Mnangagwa's latest bid to arrest price distortions - THE National Comp...

by Staff reporter | 25 August 2019 | 1 Views

'The path had to be set for Mugabe' - Last week, Farai Tafirenyika cla...

by Staff reporter | 25 August 2019 | 1 Views

Mugabe's no to GMOs, position unchanged - GOVERNMENT says it will main...

by Staff reporter | 25 August 2019 | 1 Views

US Tendai Biti to take over from Chamisa ahead of 2023 polls?

by Staff reporter | 25 August 2019 | 3 Views

Entertainment

Top 5 PS2 ISOS to play with friends you can get right now

by Staff Writer | 21 August 2019 | 166 Views

Rebecca Malope retires

by Mandla Ndlovu | 20 August 2019 | 5940 Views

Zimfest delivers another 'phenomenal' festival

by Tidi Kwidini | 07 August 2019 | 641 Views

Should you be betting on reality TV show outcome too?

by Staff Writer | 05 August 2019 | 350 Views

WATCH: Jah Prayzah featuring Iyasa Sadza nemuriwo song

by Mandla Ndlovu | 23 July 2019 | 5733 Views

Muvhango star Marang Phala visits Prophet Sovi's church

by Mandla Ndlovu | 22 July 2019 | 9681 Views

Pure Black set to take Africa by storm

by Mandla Ndlovu | 04 July 2019 | 1072 Views