News / National
CCC MPs demand Mnangagwa action as ZiG devalues
03 Oct 2024 at 16:25hrs | Views
Opposition Members of Parliament (MPs) have expressed frustration over the continued devaluation of Zimbabwe's local currency, the Zimbabwe Gold (ZWG), urging the government to address the nation's long-standing economic challenges. Their concerns followed President Emmerson Mnangagwa's State of the Nation Address (SONA) on Wednesday, which some lawmakers criticized as lacking meaningful solutions.
Marondera Central MP Caston Matewu voiced the opposition's dissatisfaction, highlighting that Zimbabweans have endured prolonged hardship due to what he described as the government's failure to stabilize the economy. His comments come in the wake of the ZWG’s 44% devaluation last week, a move that has led to sharp price increases for goods and services.
"We found the notion that the ZWG was backed by gold and other minerals false. The statement was hollow. We call upon the executive to make sure that they bring sanity to the economic situation in the country. Many people are suffering," Matewu told NewZimbabwe.com.
Matewu also criticized the timing of the devaluation, which came after civil servants had received their salaries, effectively reducing the value of their earnings overnight. He described Mnangagwa’s SONA as uninspiring, saying it lacked new initiatives to tackle Zimbabwe's pressing economic woes.
"There was nothing new in that speech. We are not moving as a country. The speech was hollow, nothing inspiring, and nothing to look forward to," he added.
In his address, Mnangagwa emphasized the government's commitment to supporting the ZWG, pledging 50% of mining royalties to bolster the currency, which has struggled to maintain its value against the US dollar. He also mentioned efforts to stabilize the foreign exchange market through a more flexible "willing-buyer, willing-seller" arrangement, though this has done little to curb inflationary pressures.
"The adoption of the Zimbabwe Gold (ZWG) in April 2024 was an important step towards stabilizing the domestic currency, anchored by our gold and precious metal reserves," Mnangagwa said. He acknowledged the resurgence of parallel market activities, attributing them to "speculative tendencies" that are undermining efforts to maintain economic stability.
However, opposition MPs argue that more decisive action is needed to stem the ongoing economic decline and restore confidence in the local currency, calling on the government to urgently address the root causes of Zimbabwe's financial crisis.
Marondera Central MP Caston Matewu voiced the opposition's dissatisfaction, highlighting that Zimbabweans have endured prolonged hardship due to what he described as the government's failure to stabilize the economy. His comments come in the wake of the ZWG’s 44% devaluation last week, a move that has led to sharp price increases for goods and services.
"We found the notion that the ZWG was backed by gold and other minerals false. The statement was hollow. We call upon the executive to make sure that they bring sanity to the economic situation in the country. Many people are suffering," Matewu told NewZimbabwe.com.
Matewu also criticized the timing of the devaluation, which came after civil servants had received their salaries, effectively reducing the value of their earnings overnight. He described Mnangagwa’s SONA as uninspiring, saying it lacked new initiatives to tackle Zimbabwe's pressing economic woes.
"There was nothing new in that speech. We are not moving as a country. The speech was hollow, nothing inspiring, and nothing to look forward to," he added.
In his address, Mnangagwa emphasized the government's commitment to supporting the ZWG, pledging 50% of mining royalties to bolster the currency, which has struggled to maintain its value against the US dollar. He also mentioned efforts to stabilize the foreign exchange market through a more flexible "willing-buyer, willing-seller" arrangement, though this has done little to curb inflationary pressures.
"The adoption of the Zimbabwe Gold (ZWG) in April 2024 was an important step towards stabilizing the domestic currency, anchored by our gold and precious metal reserves," Mnangagwa said. He acknowledged the resurgence of parallel market activities, attributing them to "speculative tendencies" that are undermining efforts to maintain economic stability.
However, opposition MPs argue that more decisive action is needed to stem the ongoing economic decline and restore confidence in the local currency, calling on the government to urgently address the root causes of Zimbabwe's financial crisis.
Source - NewZimbabwe
