Cash crisis: Mangudya, Chinamasa being ‘dishonest’

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EDITOR — The Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya and Finance minister Patrick Chinamasa have not been honest to the people of Zimbabwe on the true causes of the current cash crisis and the real motive behind the introduction of the questionable bond notes.

It is shocking that it has taken a few months since assumption of office for Governor Mangudya to expose himself fully to the watching eyes of the Zimbabweans and the international community.

To us it is clear that the primary cause of the cash shortages is that the government has literally been raiding the Real Time Gross Services (RTGS) balances at the central bank to pay for its own recurrent expenditures.

Zimbabwe’s wage bill is clearly unsustainable and is driving a major budget deficit, which we estimate to be 30 percent of the Gross Domestic Product.

It is our belief that the hole in the RTGS balances is as huge as $2 billion and has left Chinamasa and Mangudya with no choice but to commit suicide through the measures announced on May 4, 2016.

Indeed, as our colleague, Eddie Cross has been saying, the government has been issuing Treasury Bills (TBs) like confetti as if there is no tomorrow.  These TBs have been honoured from the RBZ.

In our view, Chinamasa and Mangudya must stop lying to the people of Zimbabwe and the International Monetary Fund.

Vince Musewe

PDP Secretary for Finance and Economic Affairs

 

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