MDC says Mangudya’s monetary policy statement is anti-worker

The Tsvangirai faction of the Movement for Democratic Change says central bank governor John Mangudya’s monetary police statement released last week is anti-worker and anti-poor.

“We reject the misplaced view that wages are the only cost drivers,” the party said in a statement released at the weekend. “Far from it. Public utilities, imports, corruption and profiteering are some of the causes of inflation not wages. The MDC will fight and resist labour market flexibility which is being introduced by the clueless ZANU-PF regime.”

Mangudya called for a wage-freeze and a reduction in prices to stimulate demand.

The MDC-T said Mangudya and his Finance Minister Patrick Chinamasa were presiding over a comatose economy.

“No amount of financial engineering is going to reverse deflation and the liquidity crunch,” the party said. “The so-called ‘rebalancing’ of the economy is a pie in the sky. What needs re – balancing is the politics of the country which makes the economy hostage.”

Full statement:

Saturday, 14 February 2015

 Remarks on the RBZ Monetary policy statement 

The monetary policy statement by the Reserve Bank Governor smacks of a neo-liberal agenda as among other measures it seeks to cause a general wage freeze in Zimbabwe at a time when minimum wages are far below the poverty datum line of USD450 per month.

The MDC therefore condemns the anti-worker monetary statement. We reject the misplaced view that wages are the only cost drivers. Far from it. Public utilities, imports, corruption and profiteering are some of the causes of inflation not wages. The MDC will fight and resist labour market flexibility which is being introduced by the clueless Zanu PF regime.

The monetary policy statement is clearly anti-worker and not pro-poor. How can millions of Zimbabweans whose Zim dollar bank balances were ravaged by government-induced hyperinflation only get US$5 as compensation? This can only mean that the Governor is bereft of any new ideas to deal with the residual effects of hyperinflation.

The Governor, like his Minister of Finance, are presiding over a comatose economy and no amount of financial engineering is going to reverse deflation and the liquidity crunch. The so-called "rebalancing" of the economy is a pie in the sky. What needs re – balancing is the politics of the country which makes the economy hostage. The talk of competitiveness in the absence of foreign direct investment (FDI) will not work. Competitiveness requires social dialogue and the full consummation of the Kadoma Declaration.

The Monetary Policy Statement is a damp squib. The financial sector is like a jungle without GPS. Most banks are on the verge of collapse and depositors risk losing their savings. The US$200 million borrowed from Afrexim bank for the resumption of interbank facilities is not enough as it will be swallowed by non-performing loans and externalization.

The MDC is of the view that the Governor is biting more than he can chew. He must focus his attention on the odious RBZ debt of USD 1.3 billion and explain to Zimbabweans how the debt was accrued. The MDC rejects the RBZ Debt Assumption Bill and calls upon Governor Mangudya to publish the list of beneficiaries and measures he intends to institute in order to recover public funds.

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