Former Finance Minister, Tendai Biti has criticized the latest policy announcements by the Ministry of Finance, calling them a “leviathan manifestation” of the leadership crisis gripping Zimbabwe.
Posting on Twitter, Biti said the four measures announced by the Ministry of Finance – removal of duty on basic imports, assumption of RBZ debt, removal of Export Surrender Requirements, and a pre-announced envelope on FX auction – will not halt the collapse of the Zimbabwean dollar nor reverse the economic meltdown.
He believes that the real cause of macro instability in Zimbabwe is the failed exchange policy and suggests that the country should dollarize.
“We contend that the real cause of the macro instability is the failed exchange policy. De – dollarization has failed and failed in absolute terms. To achieve stability and to contain inflation regime must dollarize and float the Zim $. Civil servants and pensioners must be paid in US$,” said Biti.
Biti also calls for the scrapping of gold coins and gold coin-backed digital currency, which he considers to be instruments of laundering and looting.
“Gold coins and gold coin backed digital currency are a zany instrument of laundering and looting. They must be scrapped immediately with our gold being used to stock up reserves. The Dutch auction system has been another means of theft and capture and must be abandoned forthwith.
“Only in Dec and against our protests Mthuli Ncube scrapped duty free imports of basic commoditie.5 months on the perennial flip flopper reverses his decision. The challenge of adhocratic move is that it will not address inflation nor exchange rate collapse,” said Biti.
Biti further said the decision to assume RBZ debt is not only unconstitutional but also morally irreprehensible.
“The decision to assume RBZ debt is not only unconstitutional but morally irreprehensible. This RBZ has been guilty of corrosive Quasi Fiscal Activities outside parliamentary scrutiny. It’s huge debt and relationship with the opaque Afrexim Bank is odious and incestuous. All debt assumptions must have prior approval of parliament and this move is clearly unconstitutional. More than that it’s wrong to continue to saddle tax payers with opaque Central Bank debt. This Bank is rogue and needs to be replaced by a Currency Board. Truth is this lot has failed,” said Biti.
