Finance Minister Ncube Told That His Proposed Currency Reforms Not Possible

Use EcoCash to buy NetOne & Telecel airtime online. Tap here

Newly appointed Minister of Finance and Economic Development, Mthuli Ncube is reported to have been told that his proposed currency reforms will not be possible in the near future. Ncube had said that he was looking at shelving the bond notes possibly before the end of the year. However, The Zimbabwe Independent reports, that Ncube was advised that this would not be possible as there is currently no alternative. Sources who spoke to The Zimbabwe Independent said,

Ncube held meetings to engage with stakeholders. He was not only told of the economic problems the country, companies and individuals were facing but that his currency proposals were dead in the water, at least for now. He was also told that government is in a deep fiscal crisis and how it was surviving through printing or creating money through quasi-currency instruments, running huge and certainly illegal borrowings with the central bank, and widening budget deficits to fund its runaway expenditures. In short, the government is living beyond its means and has created a huge financial mess which will not be easy to clean up.

…On the options advanced by Ncube, full dollarisation is a long short because for that to happen we need sufficient forex and liquidity in the economy; so where will the money come from? Joining the Multilateral Monetary Area will be impossible because Zimbabwe does not meet the convergence criteria, which include the fact that a member must have their own currency. There are also many other benchmarks.


Related:


More: The Zimbabwe Independent

Mthuli NcubeBond Notes

Professor Mthuli Ncube is the Minister of Finance and Economic Development.He was the Chief Economist and Vice President of the African Development Bank ,financial, economics, investment, and public policy expert, entrepreneur and academic. Professor Ncube divides his time between the private sector in Switzerland and... Read More About Mthuli Ncube

Bond Notes are a currency of notes backed by a bond that the Zimbabwe government announced on 4 May 2016 by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya. The $2 denomination of the notes was finally introduced on 28 November 2016. More notes were... Read More About Bond Notes

WhatsApp Discussions

Click to subscribe to a Pindula WhatsApp Group:
https://chat.whatsapp.com/ICkeismFpir9seKfScVe5u

If you find the group full, please notify us on +263 777 707 852 and we'll update the link.

Daily Email Brief

Get the top news delivered to your inbox every day.

3 comments

  1. Joe Cool Reply

    Ncube is a dreamer out of touch with reality.

    His theory on the civil service is to keep the same number of employees, but reduce costs by increasing their efficiiency. Sorry professor, that won’t reduce costs – it will just give the civil overlords more time to play on their cellphones.

  2. fidodensia Reply

    who is source of the story or we could just ask the man himself to explain rather than talking behind his back…. go on twitter and ask him… oh and he replies

  3. nyanhongo Reply

    In the late 80’s and early 90’s, technocrats like Joseph Made and Nkosana Moyo were incorporated in the cabinet, giving the nation false hope for change. At least Nkosana Moyo read between lines and fled before being made redundant, but look at what happened to the likes of Joseph Made. They are now reduced to village farmers and the energy to go back to the corporate world has varnished.
    As long as the political environment remains the same, these new guys in cabinet will never shine and they won’t show any professionalism in their areas of expertise. They will actually do the opposite and join the corruption web.
    ‘Legitimacy, legitimacy where are you, please come and rescue the nation so that the playing field will be level”

Leave a Reply

Your email address will not be published.