RBZ Should Be Shut Down - Biti

The former Minister for Finance and Economic Development, Tendai Biti said that Reserve Bank ofZimbabwe governor John Mangudya wanted to introduce a new currency but some senior government officials are against the idea. Speaking to the weekly publication, the Independent, Biti said:

The reason why there has been a delay is that they have been caught pants down by my tweet. They were flagrant. The delay is helping the economy because what government was doing was putting poison into the economy. It was going to introduce disaster in the economy because there have been no economic fundamentals, no exports and the government is spending available money like an aphrodisiac.

There are differences between the approach of the Minister of Finance and the approach of the Governor of the Reserve Bank. The Finance minister has openly blamed the RBZ governor John Mangudya for sponsoring quasi-fiscal activities which have contributed to the large chunk of the budget deficit.

It is common knowledge that the RBZ is the centre of the problems in Zimbabwe. We don’t need the RBZ. In fact, the RBZ should be shut down. I handled that
Ministry without the assistance of the RBZ. They need to strengthen the use of the multi-currency regime and pursue the option of the Rand Monetary Union.

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More: Independent