News / Press Release
Zimdollar returns?
26 Oct 2017 at 06:10hrs | Views
PDP President Tendai Biti yesterday warned Zimbabweans to brace up for a huge fight against the impending introduction of the Zimbabwean dollar.
Delivering the second edition of the State of the Economy Address (SEA) yesterday President Biti said the ZANUPF government had run out of options and therefore will return the Zim dollar to monetise their activities.
"Our biggest fear is that ZANU PF's appetite for expenditure is insatiable. Thus expenditure and expenditure obligations will continue to increase whilst the fiscal space continues to shrink. However, this government has exhausted the capacity of domestic resource mobilization as no one is prepared to accept TBs anymore. In this situation, we view the return of the Zimbabwe Dollar as inevitable."
He said the current monetary situation in Zimbabwe was based on the myth of transferable balances known as RTGS.
"This is a serious danger to the banking system. The banking system is holding mirror balances; which should they ever be called to account for, will fail to do so.
Thus from a very short period time, from Aug 2016 – August 2017, there's been a massive growth in broad money supply (M3) the bulk of which has been the RTGS balances," he said.
In the comprehensive SEA President Biti also addressed the issue of capture and corruption expressing concern on the involvement of the first family at the centre of illegal activities.
He spoke about the intention to create Zimbabwe Airlines a firm that is meant to benefit the first family.
"The first family is also at the centre of the formation of a new airline called Zimbabwe Airways in respect of which several individuals are being paid millions of dollars to approve the purchase of second hand Boeing planes from Malaysia airlines despite these being at the centre of crashes that happened in recent times," Mr Biti said.
President Biti provided a raft of urgent solutions to the crisis but ultimately concluded a political solution was needed.
"The only hope for the people of Zimbabwe is participation in national and electoral processes; this is why the participation in the on-going voter registration exercise is a MUST for every Zimbabwean. Giving into voter apathy at this critical stage is handing over the future of this country to tried, tested and certified failures."
Full SEA DOCUMENT below:
Delivering the second edition of the State of the Economy Address (SEA) yesterday President Biti said the ZANUPF government had run out of options and therefore will return the Zim dollar to monetise their activities.
"Our biggest fear is that ZANU PF's appetite for expenditure is insatiable. Thus expenditure and expenditure obligations will continue to increase whilst the fiscal space continues to shrink. However, this government has exhausted the capacity of domestic resource mobilization as no one is prepared to accept TBs anymore. In this situation, we view the return of the Zimbabwe Dollar as inevitable."
He said the current monetary situation in Zimbabwe was based on the myth of transferable balances known as RTGS.
"This is a serious danger to the banking system. The banking system is holding mirror balances; which should they ever be called to account for, will fail to do so.
Thus from a very short period time, from Aug 2016 – August 2017, there's been a massive growth in broad money supply (M3) the bulk of which has been the RTGS balances," he said.
In the comprehensive SEA President Biti also addressed the issue of capture and corruption expressing concern on the involvement of the first family at the centre of illegal activities.
He spoke about the intention to create Zimbabwe Airlines a firm that is meant to benefit the first family.
"The first family is also at the centre of the formation of a new airline called Zimbabwe Airways in respect of which several individuals are being paid millions of dollars to approve the purchase of second hand Boeing planes from Malaysia airlines despite these being at the centre of crashes that happened in recent times," Mr Biti said.
President Biti provided a raft of urgent solutions to the crisis but ultimately concluded a political solution was needed.
"The only hope for the people of Zimbabwe is participation in national and electoral processes; this is why the participation in the on-going voter registration exercise is a MUST for every Zimbabwean. Giving into voter apathy at this critical stage is handing over the future of this country to tried, tested and certified failures."
Full SEA DOCUMENT below:
Source - PDP
