Norton legislator (independent), Temba Mliswa, has said the Reserve Bank of Zimbabwe (RBZ) should allow the foreign currency exchange rate to find its true value in the market. He speaks as the government recently issued a cocktail of measures to curb the rate from rising beyond the declared threshold. Mliswa warns that controls might choke the economy. Pindula News presents a series of messages which Mliswa posted on social media.
Our economy is a political economy. The day it departs from being that and operates strictly in economic terms we will make progress. We have to follow the pure dictates of economics.
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There are 7 simple steps we have to be cognizant of in this mess. 1)You Auction what you physically have but if you want to Auction what you don’t have you have a duty to tell the Bidders that you are Auctioning what you don’t have.
RBZ has been conducting Auctions every 2 weeks and has NEVER disclosed that it was Auctioning currency that it didn’t have.
Now we are told by RBZ that there is a US $200m gap. This is proof that the RBZ was conducting a fictitious Auction system.
RBZ and Monetary Policy Committee have been misleading the public that the Managed Rate System has been working. It has not.
So the solution is to allow the Exchange rate to find its true value in the market.
Rwanda exchange rate is 900 to 1USD, Tanzania is 2300 to 1USD, Nigeria is 411 to 1.
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