Yesterday’s Monetary Policy Statement was met with mixed reactions on various social media platforms such as Twitter, WhatsApp, Facebook etc. I am going to present to you just a few reactions from Twitter. Here they are;
It’s now Official: Zim now has two currencies. RTGS/Bond and USD(FCA)
According to the Finance Minister Zimbabwe’s total debt stands at 16.9 bln. Foreign debt amounts to $7.4 billion. Domestic debt is $9.5 billion. It was only $275.8 million in 2012. That’s around 9,2 billion borrowed in just 6 years. What did they use it for?
#Mangudya is clueless. People celebrated when @MthuliNcube was appointed minister but at the end of the day his decisions will be controlled by Zanu PF. #Zimbabwe is not open for business with these kind policies. What happened to the bond note act (1:1) that was gazetted by gvt?
Seriously how do you increase taxes when the economy is a bad situation like this? Current bank balances have to be protected to remain at par with the USD. Govt amended the RBZ bill so they have to own up. Walk the talk. @edmnangagwa @MthuliNcube @BitiTendai #MangudyaMustGo
The animal called FCA RTGS will continue to haunt us.The money creation by government was just too much. Issuance of Treasury Bills 16. To date, Treasury Bill issuances have increased from US$2.1 billion in 2016 to a cumulative US$7.6 billion, by end of August 2018
This 2% is another monumental failure by the authorities. Dealing with symptoms and not the disease. RBZ creates excessive RTGS money and punishes the nation for that? Seriously? Common sense: “any excessive taxation, results in lower taxes collected per every dollar”
Thanks to this illegitimate vampire regime the parallel exchange rate has now shot up to 230% .Which means that one now requires ZIm$230 to purchase US$100.Ironically major driver of this push is the State itself which is buying currency from the black market.#RiggingDoesNotPay
The Governor has directed banks to separate NOSTRO FCA & RTGS FCA. I hope economists will peel this for us: an FCA account is, by definition, an account into which you deposit foreign currency. What, therefore, is an RTGS FCA & how does it differ from a NOSTRO FCA? Implications?
What we know as a historical fact is that once they separate real FCAs from the bogus ones they left us after they raided the banking system, the next thing they’ll do is raid real FCA accounts to complete their circle of looting.
Let’s not pretend we haven’t been here before.
Memories still too fresh to forget & embrace a new RTGS FCA mirage!
Zimbabwe in a tough place. All the untruths about Bond Notes being equal to USD being exposed. In 2009 the RBZ helped itself to the forex sitting in FCAs. What will be different now?
The monetary policy announced by Reserve Bank of Zimbabwe Governor JM yesterday is expected to proffer solutions to prices that have been going up and to announce measures to create financial stability in the economy. However, beyond the measures we need patience before progress
No guarantee that FCA will not be converted to RTGs Accounts. In 2009 we all opened FCA but today we are told to open another FCA. What happened to our accounts. What are they now. Am confused. Hope this will not create loopholes to empty our accounts
The nub of #MonetaryPolicyZW yesterday: the gulf between those who have access to forex & those who don’t will grow, again impoverishing the poor. The poor majority will also fund the profligacy of the obscenely rich few by an additional tax on their transactions.
To understand some of the things raised in the Monetary Policy Statement you have to understand how payments in Zimbabwe work. Techzim has done an insightful report on Zimbabwe’s payment systems. You can buy the report below