Harare, Zimbabwe (News of the South)- The issue of cash shortage in Zimbabwe has continued unabated despite the government’s introduction of a surrogate currency, Bond notes, and doesn’t seem about to end.
Various reasons have been proffered why all of a sudden the US dollar, which has been the main currency in use among the many foreign currencies accepted, has disappeared from circulation.
Of late the government’s own Bond notes have also started to disappear leading to a crunching liquidity nightmare for many who are struggling to access cash from banks or other financial applications such as Ecocash.
Whilst the government has blamed illegal externalization of foreign currency (not knowing what the explanation about bond note disappearance is) other critics have more succint and very well damning reasons.
Former Finance Minister Tendai Biti had one such explanation which, though heard before, he gave in starkly clear terms to make one wonder why are we still confounded about the reason for cash shortages in Zimbabwe.
Below is his answer whilst speaking to one reporter.
“Who says the Rand is not an international currency? These are fictitious arguments that are being used by people who have failed”.
“The problem we have right now, the cash shortage is not a result of the currency which we are using. The problem which we are having, why people are sleeping in banks, is because Chinamasa has stolen money at the Central Bank”.
“Since 2014 they have been stealing money at the Central Bank but the Central Bank doesn’t have money- it’s BROKE! So, in fact they have been stealing money in other people’s RTG balances, they’ve been stealing money in other people’s Nostro accounts. So when you go and take your money, you won’t find it”
“So assuming the theory is correct, that people are externalizing, people are exetrnalising what is theirs. So, if I have got $100 and go to my bank and get $100 that should not affect you Violet, when you go to your bank and ask for $100”
“But if another person has come and raided your money and my money then we will have a problem. And this is what has happened”
“There’s been a bank robber, a modern Josey Wales, a modern outlaw in the form of Chinamasa, who has gone and raided the Central Bank to fund excessive government expenditure, to fund excessive recurrent expenditure, and that is the problem”.
“The issue of people getting money (out) should have happened under my watch, because if people will always externalize, why didn’t the externalize between 2009 and 2013, money was still fungible, the Rand was fungible, and the Rand is an international currency”
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