Gono immediately threw back a punch and in turn said his policy stands
and that the public should disregard statements from people outside the
Reserve Bank of Zimbabwe (RBZ).
Mutambara sided with Biti who said that Gono and Chinamasa’s blue
prints should thrown into the trash can because they were at the core
of economic decay in Zimbabwe.
Gono called for a press conference to reiterate his stance folliwng calls from businesses who were confused on the way forward.
Gono said the Reserve Bank of Zimbabwe had been inundated with
desperate calls from stakeholders pertaining to the leagl standing of
the recently announced Monetary Policy Statement, that the Bank issued
on February 2.
He said desperate farmers sought clarification on the liberalisation of
the marketing of farm produce in line with purchasing power parity
prices, payable in foreign currency. He said a farmer from Mvurwi
called the centarl bank while making a U-turn with his sugar beans.
Gono said: "Some banks have telephoned in demanding that they be
refunded the statutory reserves thay had paid, following the reported
nullification of the monetary policy statement by certain authorities
outside the Reserve Bank.
Gold producers have telephoned, feraing that there was going to be
policy reversals on the recent move to allow gold mines to freely trade
physical gold."
He said some exporters called in concerned that the new government was
going to reverse the liberalisation of the exchange rate while other
called fearing that the allowance for the co-circulation of multiple
currencies would be reversed.
"Cooperating regional and international financiers who had offered
lines of credit of around US$500 million on the back of the recent
liberalisation have also telephoned in seeking clarification of the
correct position, following the conflicting signals that are alleged to
be coming from some authorities in Government," the central bank
governor said.
"These sentiments by our creditors, if unchecked, risk protracting the
current macro-economic instabilities through unintended consequences of
worsening our limited foreign currency supplies."
Gono, whose battle with Biti is soon expected to reach a crescendo said
importers of basic goods were confused about whether or not the duty
free status of basic commodities is the correct position.
"Quiet clearly, therefore, the reported alleged nullification of the
recent monetary policy statement has unfortunately unsettled the
market, at a time when we should be working for the return of
macroeconomic stability," Gono said.
Gono then went on to defend his position and institution and outlined
the what the Reserve Bank Act dictates saying the RBZ is a juristic
person, craeted by the legitimate statutes as espoused in the Reserve
Bank of Zimbabwe Act Chapter 22:15.
He said the principal functions of the RBZ was to regulate Zimbabwe;s
monetary system, achieve and maintain the stability of the Zimbabwe
dollar, foster the liquidity, solvency, stability and proper
functioning of Zimbabwe’s financial system, advance the general
economic policies of the government, supervise banks and promote the
smooth operations of payment systems.
Other functions inlcude, Gono said, the formualtion and execution of
the monetary policy of the country, acting as an financial advisor to
and the fiscal agent of the State, lender of last resort for banks
among a host of other duties.
"Against this background therefore, the Reserve Bank of Zimbabwe wishes
to advise all stakeholders locally, regionally and internationally that
the Monetary Policy Statement as announced on 2 February 2009 does
constitute the legitimate policy position in the affairs of the
Monetary Policy Management of the Country," Gono put his foot down.
"Stakeholders, particulary the banking sector players are, therefore
called upon to ensure that they do not break the standing legitimate
statutory requirements as is set in the Zimbabwean laws," he warned.
He then turned on the principals of the Global Political Agreeement
saying: "As we work to stabilise the national economy, we advise our
principals in the field of politics to carefully weigh their
pronouncements, particularly in technical areas such as banking and
finance that risk destabilising the economy. Ordinarily, where there is
roon for policy enhancement, such enhancements must bedone in an
orderly manner with the singular objective of being constructive in the
public interest, as opposed to deliberately engaging in destructive
pronouncements."
Mutambara at a roundtable for chief executive officers in Harare said:
"Don’t base your planning on Chinamasa’s or Gono’s statements. There will be fundamental reviews on these."
Prime Minister Morgan Tsvangirai urged businesses to join hands with
the government and pull in one direction. He emphasied that corruption
will not be tolerated.