Former Finance Minister, Tendai Biti who is also the Vice President of the opposition MDC led by Nelson Chamisa has proposed that some functions and powers be removed from the Reserve Bank of Zimbabwe.
Biti opined that the central bank was everywhere in the economy already a set up that is likely to stifle the economy. Speaking during a debate in the National Assembly on the second reading stage of the Money Laundering and Proceeds of Crime Bill, Biti said:
Two weeks ago, I presented on behalf of the PAC a report on the omissions of the RBZ. We made a recommendation that the footprints of the RBZ were too much in the economy because they are responsible for distribution of foreign currency, export requirements, subsidies and issuance of Treasury Bills, lending and borrowing.
PAC recommended that section 6 of the RBZ Act should be amended so that their functions are issuance of foreign currency, management of the monetary policy statement, management of the payment system and a banker of last resort.
He claimed that the RBZ itself needed to be investigated for corruption therefore it cannot house the Financial Intelligence Unit.
His remarks come when there are pending cases which suggest that the RBZ violated Public Finance Principles, for instance, by borrowing without the approval of the Parliament.
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