Zimbabwe is not going back to the US dollar-Mangudya jumped the gun

He added that the move by the government was an act of desperation by a regime that was on its knees.

“So the regime’s opaque attempt to re-dollarize marks the desperate act of a desperate regime that is literally on its knees,” he said.

“With the closure of Beitbridge, dwindling diaspora remittances, the collapse of the #SMP, fuel & energy crises, #COVID19, grain shortages, the regime is in crises.

“Re-dollarization will not mask or obviate the need for genuine structural reforms in Zimbabwe, nor the imperator to resolve the crises of legitimacy. It will not hide the genuine need for a lasting political settlement. Nor will it hide the regime’s gross incompetence and abuse of power.

“#COVID19 has exposed the regime for what it is, a bungling incompetent corrupt gang of thugs masquerading as a government.”

It is not clear what will happen to Mangudya if it turns out that he announced yesterday’s measures without the agreement of the Monetary Policy Committee.

Mangudya is less than a year into his second and final term which was renewed on 1 May last year.

Mthuli Ncube appointed a nine-member Monetary Policy Committee in September last year in a move that was widely seen as trying to rein in Mangudya.

According to the Herald the MPC’s functions entailed determining the monetary policy of Zimbabwe; including the setting of limits on open market operations by the bank and ensure price stability as defined by the Government’s inflation target in the national budget.

It would also determine interest rates in line with the Government’s economic policies and targets for growth and employment creation as well as other monetary policy functions, as the finance minister may prescribe by way of regulations.

The paper said that according to the Reserve Bank of Zimbabwe Act, the committee submits its findings to the board of the central bank but this is for information purposes only.

Mangudya chairs the MPC and his two deputies are also members.

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