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;
Zim Bollar Index @ZimBollar 22h22 hours ago
It’s now Official: Zim now has two currencies. RTGS/Bond and USD(FCA)
Alex T Magaisa 🇿🇼 @Wamagaisa 15h15 hours ago
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?
Shingirai Muzenda @ShingiMuzenda 32m32 minutes ago
Kkkkk macroeconomics is one of the difficulty topics. The economy is not CBZ man. Just do us a favor and resign. #Mangudyamustgo @edmnangagwa
#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
Shame @ExpBusinessSA 20h20 hours ago
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
Zondi Kumwenda @zkumwenda 10h10 hours ago
Replying to @happ_zenge @MthuliNcube and 3 others
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”
TENDAI BITI @BitiTendai Sep 28
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
Alex T Magaisa 🇿🇼 @Wamagaisa 22h22 hours ago
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!
Edwin Ukama @EdwinUkama 6h6 hours ago
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?
Marshall Gore @marshallgore 10h10 hours ago
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
Replying to @OpenParlyZw @MthuliNcube
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
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9 comments
The 5 cents charge on electronic transactions came about to reolace the 5cebnts Stamp duty on cheque books. Is it legal to then replace this duty per transaction/cheque with this $ based charge?
The whole reason of going digital is to reduce (and eventually eliminate) the cost of doing business. If you still want to charge people for cheques then give them cheque books.
They pass which ever law they when required don’t worry about ligitimacy
Legal theft is still Theft – How many chances do these guys get to steal ?.For a very Educated Society Zimbabweans are Gutless . Government is ROTTEN through & through.
With Regards the 2% Tax per Dollar on all Transactions. Food for thought – A Fuel Station by law can only make 6c per litre .So on $100,000 they make approx . $4500 Gross profit . Then the Government takes $2000 in Tranaction tax .Its Crazy .I would’nt be surprised if by Tomorrow the Fuel Stations switch off their Swipe machines .I would
Your mathematics is flawed. Govt will make R1500 against the R4500 in the example, not R2000
I voted for change…. They wanted it so badly so as to rigg…. Now fix it… Together with so your supporters who are crying even louder than when they were celebrating. We need to have a new position… Stamp out this rampant corruption..De politicise everything… Create an enabling environment for locals first…. But maybe I’m dreaming
The President says the tax is fair as it will only add 2 cents to a loaf of bread. But think of this.
A farmer sells wheat to a miller for $1,000 + $20 tax
Miller sells to baker plus $20 tax
Miller sells to supermarket plus $20 tax
Supermarket sells to consumer plus $20 tax
The bread will not be $1.02, but $1.08. At least.
I don’t understand, are you guys analyzing your decisions before you make them. Macroeconomics is different from running a SMEs. In other words you finally agreed with the black market money changers who are selling ud$100 for $250 bonds. When bonds first introduced you said were to assist the US dollar on the situations of changes, because US dollar lakes the coin component. Now you saying we need to open a separate bank accounts which means bond is now a currency on its own but we all know that bond is no different from an ordinary paper.