How Zimbabweans Reacted To The Monetary Policy Statement

On Monday, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya presented his mid-term monetary policy statement while Minister of Finance, Mthuli Ncube presented his statement on fiscal measures. The two measures were generally not well accepted as they included the following measures:

• Separation of Nostro Foreign Currency Accounts and RTGS Foreign Currency Accounts
• Massive increase in the tax for transferring money from 5 cents per transaction to 2 per cent of the transaction

Below are some of the reactions to the Monetary Policy Statement:

What we know as a historical fact is that once they separate real FCAs from the bogus ones they left us after they raided the banking system, the next thing they’ll do is raid real FCA accounts to complete their circle of looting.

Let’s not pretend we haven’t been here before.

— Fadzayi Mahere🇿🇼 (@advocatemahere) October 2, 2018

https://twitter.com/begottensun/status/1046774426161893376

If the new 2% charge is to deter parallel market players from using the RTGS platform. The monetary authorities should make it rebatable for productive sector, formal business & genuine payments to say ZESA. Using Jan-Jun this will amount to $692m…~$1.4bn per annum! pic.twitter.com/BlF6hDCzFD

— Busisa Moyo (@BusisaMoyo) October 2, 2018

We had FCA USD bank accounts which eventually morphed into bond notes. Now we are supossed to reopen FCA accounts again which we had before. This is so confusing. Its better not to Bank anymore. 😐

— Brenda Dube (@boldcolours) October 2, 2018

Who forced people to use electronic money? How did it happen? Because they didnt have enough currency. Why? Because they failed to match what was there in M3 by constantly issuing TBs to fund what? Their huge expenditure! Why are people being made to pay for it? @tambarara

— Happi Zengeni-Manyere (@happ_zenge) October 2, 2018

https://twitter.com/maud_chifamba/status/1047027315845320705

“I have high confidence in this measure we are taking. I know it will bear fruits. In the event the bond notes fail, I will surely walk resign & walk away from the office & leave someone else to take charge becoz I wld hv failed the nation,” Mangudya, 2016#MangudyaMustGo pic.twitter.com/ycBDzUPn9E

— Open Parly ZW (@OpenParlyZw) October 2, 2018

On RTGS FCA & NOSTRO FCA here’s how one chap put it on WhatsApp:

“Varikusimbisa kuti mari irimu account mako haisi US dhora. MaChunks haasi nyama. MaChunks muCupboard, nyama muFridge”

(They’re saying chunks aren’t meat. Chunks are kept in the cupboard, meat in the fridge)

— Alex T Magaisa 🇿🇼 (@Wamagaisa) October 1, 2018

14 September 2016, @ChronicleZim || "If the bond notes do not work out, I’m willing to resign" #MangudyaMustGo pic.twitter.com/cJsb5qQ9O9

— Open Parly ZW (@OpenParlyZw) October 2, 2018

Memories still too fresh to forget & embrace a new RTGS FCA mirage! pic.twitter.com/sGywC6bi3h

— Prof Jonathan Moyo (@ProfJNMoyo) October 2, 2018

Intelligent Journos must ask Mangudya if as of today 01 October 2018, the bond note is still 1:1 and if his answer is yes, why is he asking Foreigners to pay goods & services strictly in forex?

— W. Zambezi Snr (@williamzambezi) October 1, 2018

Anyone compared the reaction: St John's VS Monetary Policy? #263Chat #twimbos

— Nigel Mugamu 🇿🇼 (@SirNige) October 2, 2018

On RTGS FCA & NOSTRO FCA here’s how one chap put it on WhatsApp:

“Varikusimbisa kuti mari irimu account mako haisi US dhora. MaChunks haasi nyama. MaChunks muCupboard, nyama muFridge”

(They’re saying chunks aren’t meat. Chunks are kept in the cupboard, meat in the fridge)

— Alex T Magaisa 🇿🇼 (@Wamagaisa) October 1, 2018

"Fool me once, shame on you. Fool me twice, shame on me."

John Mangudya gives a compelling performance in the Gideon Gono role in 'The People Versus the Reserve Bank of Zimbabwe' sequel.

If we let Mangudya & his principals get away with the latest heist then it's our fault.

— Lashias Ncube (@lashiasn) October 2, 2018

Why push people to use plastic money then levy a tax for using the bank transfer system? Have the authorities considered the impact of this decision on the already rampant price increases? What impact will this have on the black market rate which is a reality they can’t deny?

— Fadzayi Mahere🇿🇼 (@advocatemahere) October 2, 2018

“If taxation without consent is not robbery, then any band of robbers have only to declare themselves a government, and all their robberies are legalized.” – Lysander Spooner pic.twitter.com/6kxwrujb2j

— Steve Hanke (@steve_hanke) October 2, 2018

Worth posting multiple times- Zimbabwe is in a lot of debt, since the GNU ended they managed to expand domestic debt from US$275.8 million in 2012 to current levels of US$9.5 billion against US$7.4 billion external debt. total public debt to US$16.9 billion.-How and why

— Chipo Dendere (@drDendere) October 1, 2018

I know they don’t care but I just want to say to @MthuliNcube & Mangudya – there’s no such legal thing as an RTGS currency. There’s no such legal thing as a Zim dollar. Neither the RBZ Act nor the Banking Act provide for their illegal utterances yesterday.

— Fadzayi Mahere🇿🇼 (@advocatemahere) October 2, 2018

https://twitter.com/Seth_ZW/status/1047066376685441024

They specialize in making us poor. How many times will you rob us and expect us to be okay with it? This is not right, it is unjust and it is cruelty to an already struggling people. #NotYetUhuru pic.twitter.com/uM1wjQ8aYN

— Evan Mawarire (@PastorEvanLive) October 2, 2018

Yesterday's monetary statement was a disaster, the fiscal statement was economic hara kiri. It's behind us now. Let bygones be bygones

— Nqaba Matshazi (@nqabamatshazi) October 2, 2018

Mangudya has turned out to be another Gono. A lipsticked frog. The old masquerading as the new.

— Luke Tamborinyoka (@luke_tambo) October 2, 2018

Zanu PF won 70% of its vote in rural areas. Rural areas contribute less than a third to GDP. So we can cry about new taxes, new RTGS FCA, nostro etc, but Zanu PF's base is largely untouched

— Nqaba Matshazi (@nqabamatshazi) October 2, 2018

Zimbabweans are now enrolled at the Zimbabwe School of Pfee-conomics after successfully graduating from the Zimbabwe School of Mugabenomics last November. This is the first semester.

— Alex T Magaisa 🇿🇼 (@Wamagaisa) October 2, 2018

This billboard is a great lesson in how PR spin can go very wrong. When you are not trusted as a body, avoid making bold declarations! @263Chat pic.twitter.com/qosyZf6Jfl

— VINCENT KAHIYA (@VTKAHIYA) October 2, 2018

1/2 Why do I feel robbed? After peddling the propaganda that Zimbabwe's phantom money is at par with the US$,the RBZ chief suddenly announces that banks must seperate the wheat from the chaff, ie RTGS accounts are NOT at par with forex accounts. What happens to people's savings?

— Brezh Malaba (@BrezhMalaba) October 1, 2018

I am still having nightmares about being charged 2 cents per dollar for every transaction Min @MthuliNcube.

That figure seriously needs to come down.

We already have a cash crisis and can't be penalised for using electronic means of payment

There is no other choice#MPS2018

— C.E Mambo 🇿🇼 (@cemambo) October 2, 2018

But we told you that this whole thing would never work & that you’d make us all bankrupt! ⁦@ReserveBankZIM⁩ we literally debated with u & begged u not do this. The bond note has completely failed and we the citizens are suffering again, haaa no guys taneta nemi pic.twitter.com/svJpQsOp28

— Evan Mawarire (@PastorEvanLive) October 2, 2018

Locally this new charge of 2% per RTGS transaction does this mean there will be inflation caused by retailers forwarding the cost of transacting to the consumer e.g. imagine the cost of @SPARZimbabwe paying @Delta $1million RTGS it will cost $20,000 ?#MPS2018

— Jeff Murimbechi (@jeffreydanai) October 2, 2018

The nub of #MonetaryPolicyZW yesterday: the gulf between those who have access to forex & those who don’t will grow, again impoverishing the poor. The poor majority will also fund the profligacy of the obscenely rich few by an additional tax on their transactions.

— David Coltart (@DavidColtart) October 2, 2018

My solutions are as follows:

1. Mangudya must resign.
2. ED’s administration must accept they have no solutions to fix the comatose economy and resign.
3. They must pay back the money they stole. https://t.co/t97zyfnPKy

— Fadzayi Mahere🇿🇼 (@advocatemahere) October 2, 2018

Dear Panonetsa Mangudya

I write resignation letters for 2 c per word.

Inbox me for details#MangudyaMustGo

— Duduzile Nyirongo (@Dudu_Nyirongo) October 2, 2018

14 September 2016, @ChronicleZim || "If the bond notes do not work out, I’m willing to resign" #MangudyaMustGo pic.twitter.com/cJsb5qQ9O9

— Open Parly ZW (@OpenParlyZw) October 2, 2018

Poor people transact more mobile payments than rich people. Taxes should be increased on all the luxury items vehicles, Whisky etc. The 60% food imports are at ridiculous especially when we are not producing. @MthuliNcube you have declared war with the poor #MonetaryPolicyZW

— Linda Tsungirirai Masarira (@lilomatic) October 2, 2018