Deputy Minister of Information, Media and Broadcasting Services Energy Mutodi has dismissed as false claims by opposition legislator Tendai Biti that government was on the verge of introducing a new currency.
Biti announced earlier today that some government sources had confided in him that a new currency was on its way, a move he said was ‘pure undiluted insanity’.
Mutodi has however jumped in to dismiss the claims saying it was meant to cause panic on the market adding that the Reserve Bank of Zimbabwe (RBZ) is working on the monetary policy which is expected this week.
Hon. Biti has falsely claimed that gvt will be introducing a new currency next week so as to cause panic on the market. The truth is the RBZ Governor is still working on the monetary policy. May the lawyer focus on what he knows best not economics.
— Hon. Energy Mutodi (MP) (@energymutodi) February 11, 2019
In his Twitter post, Biti said the new currency to be introduced this week will not be backed by any reserves or any structural reforms.
He added that the new currency is coming when there was no trust in the Zanu PF led government, something he suggested could inflict more harm on the already struggling economy.
“There is no country in the world that has involuntarily dollarized that has ever succeeded in de -dollarizing.
“Zim will not be the 1st. Whilst a currency is about fundamentals, ultimately the most important fundamental is confidence There is absolutely no trust in this regime.
“Considering the harm and damage inflicted on this economy by its Central Bank over the years to now , the question to be posed is , does Zimbabwe really need a Central Bank ?. In my submission, it can and will do without one,” said Biti.
Another controversial figure, Acie Lumumba appeared to confirm the coming of a new currency urging Zimbabweans to be prepared for the new era.
“I can confirm its true! New local currency on the way, there is a condition of securing reserves in place but I can confirm to you. It’s coming. Prepare yourself. At best they will delay, most likely not,” said Lumumba.