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Mnangagwa Playing With People’s Lives – President Chamisa

Opposition leader Advocate Nelson Chamisa has strongly criticized Finance Minister Mthuli Ncube’s touted economic revival measures, describing them as mere cosmetic changes.

Chamisa asserts that Zimbabwe’s currency crisis stems from a lack of confidence, which cannot be resolved by implementing currency boards or structured frameworks alone.

Previous attempts, such as introducing bond notes and gold coins, failed to address the underlying issues.

Chamisa highlights the importance of transparency and public trust, which he believes are undermined by the opaque nature of the proposed measures.

He argues that successful implementation of currency boards elsewhere relied on accountability and adherence to legal frameworks, qualities he finds lacking in Zimbabwe’s governance.

While acknowledging the success of currency boards in other countries, Chamisa emphasizes that Zimbabwe’s unique challenges, including a confidence deficit and external shocks, weaken the effectiveness of such measures.

He criticizes the government’s reliance on ineffective fiscal and monetary policies, calling for genuine political and economic reforms prioritizing accountability and transparency.

Chamisa rejects superficial solutions and urges Zimbabwe to embrace comprehensive reforms that address the root causes of its economic woes.

See Nelson Chamisa’s statement below…

THE STRUCTURED CURRENCY AND CURRENCY BOARD TOO LITTLE AND TOO LAME!

The currency crisis Zimbabwe faces is basically a crisis of CONFIDENCE.

This confidence deficit crisis can’t be addressed by setting up currency board nor establishing a structured currency framework.

This is why previous efforts which include the introduction of bond note, gold coins and ZIG failed dismally.

Moreover, the lack of transparency surrounding this process only fuels suspicion and undermines public trust.

As for the proposed currency board my assessment of where this has happened successfully shows that the success hinges on accountability, transparency, and adherence to legal instruments—qualities sorely lacking in Zimbabwe’s current governance.

The pervasive state policy inconsistency erodes confidence in the system’s integrity. Without these critical success factors in place, the currency board is doomed to fail.

For avoidance of doubt, I know that currency boards have been used in over 38 countries with notable success because of the “confidence effect” especially in circumstances where credible people of integrity and high standing were appointed into the board.

I am also aware that currency boards work well in circumstances where central bank holds sufficient foreign which will match demand for foreign currency at a pegged exchange rate.

Our situation is so dire because it is characterized by a confidence deficit, exogenous shocks (drought & subdued commodity prices) which have a net effect of depleting our forex will weaken the effectiveness of the so – called structured currency and currency board.

It’s clear that the they are resorting to ineffective fiscal and monetary policies as the economy continues to suffer from currency leakage and a lack of value generation, exacerbated by the refusal to implement a single currency status and abandon the flawed interchange auction system.

Instead of tinkering with ineffective superficial solutions, Zimbabwe needs genuine comprehensive political and economic reforms that prioritize accountability, transparency, and the rule of law.

ZimEye

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