Zimbabwe finance chiefs grilled by opposition legislators

Caston Matewu, from the MDC Alliance area of Marondera Central, suggested that the Reserve Bank should be divorced from the government, just like in SA.

“There is one big elephant in the room, which is politics. You mentioned that there was 19.7% growth in 2010 when there was political stability, so in line with politics in economics, one thing we are calling for is the independence of the central bank.

“What can be done to ensure its independence, which will stop the Finance Minister writing to the central bank to command them to issue Treasury bills which is something that has brought the economy to its knees in the past few years?” he said.

Reserve Bank governor Mangudya had a tough time explaining why there was a cash crisis yet a lot of it was circulating on the black market.

“This economy is made up of 61% informal employment and that money moves from the bank, and once this money is outside the bank it stays there.

“That’s why we need to formalise this economy so the money goes to the bank. Due to its scarcity this is why we are bringing the new notes to close that gap,” Mangudya said.

Binga North MP Prince Dubeko (MDC Alliance) said Mangudya and Ncube “wilfully violated the laws of borrowing”.

“How do you expect an investor to have confidence when you can wilfully violate the laws of the country, and how do you speak about productivity when the interest rate is running at above 70%?”

Ncube is expected to present the 2020 budget later this month. –The Sunday Times

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