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Statement on Reserve Bank Governor's monetary policy
National Constitutional Assembly (NCA)
February 05, 2007

The long in coming monetary policy was an apparent indication that there are no new ideas at the central bank to resuscitate our ailing other than a sheer wait on divine intervention.

The Governor himself, Dr Gideon Gono lacks seriousness that is why he could afford to crack jokes about the three zeros and inflation when the majority of the populace in this country live beneath the poverty datum line. Alternatively, his hands are so tied; hence it is maybe time he did an honourable thing, such as skipping the border and resign from across.

The Governor is firefighting. The recent monitory policy indicated the honourable reserve bank governor has run short of ideas to change our fortunes and solve the economic crisis bedeviling the country.

It is time Zimbabweans appraise the Governor and reflect on his achievements hitherto. Is the rhetoric churned out by his office through different monetary policies what we expect as a nation? Is this not a childís play that must not be taken seriously by any average thinking person!

At his appointment into office when we were new to his oratory proficiency, we thought, oh, there is a messiah who will bring salvation to Zimbabwe. We shared and cherished his vision of reducing inflation from a three to two digit figure. We do not need to become economists, though every Zimbabwean has become one, to realize that inflation is being fueled.

There are fundamental constitutional and political issues that need to be addressed before we have stable foreign currency inflows. Foreign currency will not come from a mere policy that does not address the severe political problems that we face as a country. The tourism industry that is on the verge of collapse will not be revived by a mere talk show and speechification from the reserve bank governor. Zimbabwe is expensive for anyone to visit because our currency is overpriced hence we are deterring visitors.

Consequently, there is a high temptation on the Governorís part to have multitudinous rates of exchange to suit different sectors. This is only a cocktail for disaster. If history repeats itself the privileged few will start taking monies acquired from one sector at a more concessionary rate to where it fetches more elsewhere.

Economists in Zimbabwe can testify that the reserve bank has always come up with seemingly good policies that appeared as if they would resuscitate our ailing economy. Itís important to acknowledge that the situation in Zimbabwe needs more than mere policies if we are to move away from the current mess that is a direct responsibility of the government itself. Besides good and sound financial policies we also need leadership that is determined to resolve the economic crisis in the country. Itís a mockery for the reserve bank governor to fight black market in the country when it is known that his fellow government colleagues are indirectly responsible for fuelling the same market through their relatives and friends. There is also a need to realize that itís difficult to resolve the economic crisis separately from the political crisis in the country.

Investors will not come to invest their money where there is no rule of law and where bad governance is the order of the day. Life is becoming increasingly difficult and the price of basic commodities is beyond the reach of ordinary citizens. To an ordinary citizen who is not an economist, the price of commodities in the shops is a clear reflection of the reserve bankís failure to resolve the economic crisis. Signs of failure by both government and the central bank are there for everyone to see everywhere and every time we visit a shop to buy something witness this madness.

The time for talk shows is over and we can not continue suffering in the name of protecting our sovereignty. In any case sovereignty is not something that can be served on our tables. We are tired of hearing that the West is responsible for our misery here in Zimbabwe. If the West is responsible for the collapse of our economy, what are our dear leaders doing to stop it from ruining our beloved country. If the present government is failing to stop the West from causing our misery as they claim, then as voters, we should see no need to retain them in offices come election day, assuming that the elections are not rigged or that they are conducted under new set of laws that are democratic.

The situation in Zimbabwe now needs us to protest in large numbers as one nation in the streets demanding for a return to democracy and good governance. Zimbabweans should know that the power to change the current situation is in their hands and we should not fold our hands while the chefs and their cronies are continuing to destroy the countryís economy.Zanu-pf has finished the fruits of the liberation struggle and they are now uprooting it to ensure that the next generations to come will never enjoy the gains of the liberation struggle.

Zimbabweans should not take seriously the rhetoric and propaganda channeled by the reserve bank in form of monetary policies that will never change our situation. Good monetary policies need a reinforcement of good systems that promote democracy, good governance and such laws should also aim at restoring rule of law in the country. Prosperity in Zimbabwe can only be realized when we sit down as a nation to write our own constitution with the views of all stakeholders. The present constitution that is continuously manipulated by the executive will undermine the work of the reserve bank governor and all those that are working towards resolving the deepening economic crisis in the country.

Madock Chivasa
NCA Spokesperson

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