Opposition party, the Citizens Coalition for Change (CCC) says the latest economic measures meant to curb hyperinflation announced by Finance Minister Prof Mthuli Ncube yesterday have no capacity to transform the country’s economic crisis.
In a statement, CCC national spokesperson Fadzayi Mahere said more is needed to address the current crisis.
“The main policy interventions announced by Minister Ncube are a reiteration of policies that already exist and have failed to curb hyperinflation and stabilize prices. Unfortunately, the measures announced today have no capacity to transform the ailing fortunes of the Zimbabwean economy. The purported “entrenchment” of the multi-currency system and interbank market in law is not new.
“The legal framework for these old systems already exists. It will require more (including the building of confidence and addressing the macroeconomic fundamentals) than changing the wording of legislation to address hyperinflation and stabilize prices. In his statement, Minister Ncube rightly conceded that the economy suffers from a lack of confidence.
“Confidence and trust are fragile. Once lost, these are difficult to restore. Unfortunately, previous experiences have made the market paranoid and very little has been done to regain this trust. In this regard, we have consistently stated that the social contract between the state and citizens in Zimbabwe has broken down. There is a lack of confidence or trust in the economy, the State, government and public institutions,” said Mahere
Meanwhile, former Finance minister in the Government of National Unity, Tendai Biti says economic measures are an expression of incompetence by the Government given that the economy had already self-dollarized.
“When one has nothing to say one must shut up today’s presser was a tragic expression of the humongous levels of deceit, dishonesty, incompetence and hypocrisy of this regime it is not news that the multi- currency system will continue. Fact is the economy self-dollarized a long time ago
“Regime owes Zimbabweans an apology for 2019 fiction contained in SI33 of 2019 & the botched de-dollarization process. Regime must genuinely compensate those who lost value in 2019 particularly pensioners.
“Today’s announcement an acknowledgment of failure and will not address hyperinflation, food shortages and poverty levels affecting our people. It will not address the doctors and nurses’ strike nor low public wages eroded by inflation. It does not address skewered fundamentals and the disequilibrium in the economy,” Biti posted on twitter.
Announcing the measures the Prof Ncube said the use of the interbank rate in all economic transactions will be made mandatory by law but gave traders the liberty to price their goods in US dollars or Zimbabwe dollars as they wish without any price controls.
Prof Ncube also said the use of the US dollar will be used as a tradable currency into the foreseeable future.