Gono’s desperate measures to solve cash crisis

Gono is 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 

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 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

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