Gono’s desperate measures to solve cash crisis

simply playing politics with a serious national crisis that needs
immediate attention from a central bank governor who takes the people’s
suffering seriously. For over one month, he has been quiet while the cash
crisis got worse only to respond with chaotic measures that fail to solve
the problem.Gono failed to provide the new notes to banks on Thursday as he had promised
the nation on national television on Wednesday night. Any central bank
governor should keep by his word if people are to have confidence in the
banking system in particular and the economy in general. This shows a
serious lack of sincerity and economic direction.The RBZ governor is on record as saying inflation is the number one enemy
but all his policies directly feed inflation. The quasi-fiscal activities of
the central bank and the patronage system in which the same bank doles out
cash handouts and agricultural inputs are measures that hike inflation but
when the money disappears, the RBZ governor becomes worried. Money that is
in circulation does not cause inflation and the governor should simply make
people access their money when they need it.This lack of cash contributes directly to the contraction of the economy. By
his actions, the governor is causing the contraction of our economy. He
should know that on monetary matters, the buck stops with him and he should
take the blame. Gono should stop his usual blame game on imaginary enemies
of the State such as business, banks and other people he refuses to name
without taking some of the flack himself.The issue of cash barons is yet another diversionary tactic because it is
not illegal to keep cash. No reasonable person would put their money in a
bank when they know they will fail to access it the following day. The
people are not failing to access their cash because of the cash barons but
because of Gono’s policies which have eroded people’s confidence in the
banking system in this country.The zeroes have come back and the governor has failed to remove them for the
second time. The RTGS system has frequently collapsed and business has been
seriously affected. Now the computer systems cannot cope and the governor
advises the banks to go manual. The governor is simply taking the nation
back to the Stone Age and he seems to take delight in making the people
suffer.Zimbabweans are spending productive time in bank queues, which further
cripples the economy. The Reserve Bank governor is clearly the biggest
saboteur of our economy.It can only happen in Zimbabwe that people are told that their money will
expire in 12 days without warning and adequate publicity and advertisement.
Never mind Gono’s assurances, his measures will seriously hurt the ordinary
villagers in rural areas who have no access to banks and to a functioning
communications system to alert them. Withdrawing currencies and introducing
new ones without prior notice will rob them of their hard-earned cash
overnight. The ultimate victim of these ill-thought and ill-advised measures
are not Gono’s imaginary enemies of the State but the innocent citizen who
is struggling to make ends meet and to send their children to school.Gono’s policies have eroded people’s confidence in the banks. His policies
have resulted in the thriving black market and he should personally take the
blame. He should bite the bullet and introduce higher denominations than the
ones he has announced. The new currency denomination of $750 000 is not
enough of buy a loaf of bread and Zimbabwe simply needs higher denominations
to make life easy for consumers and banks.The RBZ should mitigate the people’s suffering and not to worsen it. It has
become expensive for people to come and access little amounts that are not
adequate for transport to go back to their homes.The MDC believes this regime has failed. Zimbabwe simply needs a political
solution to solve our economic problems.A new Zimbabwe, a new beginning. Now is the time.Elton Mangoma
Secretary for Economic Affairs