05-21-20 by Spotlight Zimbabwe

Zimbabweans don’t understand economics: Reserve Bank governor

Lenin Ndebele

Reserve Bank of Zimbabwe governor John Mangudya prays for Zimbabweans to “understand economics”, as annual inflation stands at 934%, according to independent economists.

Government figures claim a 676% inflation rate as of March.

Appearing on Wednesday before parliament’s budget and finance committee, led by Felix Mhona, Zanu-PF’s Chikomba Central MP, Mangudya said: “I pray for Zimbabwe each morning, saying, ‘Oh God, help Zimbabweans understand economics’,” he said.

The governor pinned poor economic performance to indiscipline in the financial services sector, where he singled out mobile money agents for operating like “Ponzi schemes” which he likened to “Sodom and Gomorrah”.

He also conceded that there was low production and economic activity in the country.

“There’s a demon in this country causing economic instability. It’s like coronavirus but we have to trace it. We have to understand the root cause of our economic challenges. We should not spend a lot of time focusing on symptoms,” he said.

On Tuesday, Zimbabwe rolled out new ZW$10 notes and will introduce $20 notes early in June. These will be the highest denomination on the market, but Mangudya said this is not going to be the reason for inflation.

“There’s a narrative which is always wrong in Zimbabwe that if we increase money supply this will cause inflation,” he said.

To get the new notes banks are exchanging their Real Times Gross Settlement (RTGS) balances for physical cash. ZW$20 notes are expected early in June.

Covid-19 has badly affected Zimbabwe and the governor said the country was left out of relief loan funds for the pandemic because it owed the World Bank and African Development Bank.

“There’s nothing we can do about it. So we are on our own,” he said, adding that the country suffers mostly from international perceptions. “Zimbabwe is considered high risk.”

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  • The governor actually believes that increased money supply won’t lead to inflation! Zimbabwe is doomed

  • I beg to differ Mr Mangudya ! (“Fence Post Tortoise !”)
    Answer us this …. Where is the U$ 15 Billion in looted diamond money ?
    How is it that Zanu PF Councillors can drive around in U$ 400 000 Lamborghini SUV’s while We walk down our ruined roads without shoes ?
    What have You done to our Food Security ?
    All those 4500 destroyed Farms which by the way were our Economic backbone which Robert Mugabe and YOU in Zanu PF just grabbed and parcelled out amongst Yourselves are NOW RUINED and GROW NOTHING and EMPLOY NO ONE and pay NO TAXES which is why We now have 8500 000 needing Food Aid !
    Who will feed them John …… YOU ?
    Need I remind You that Robert Mugabe took 14 Farms for Himself and couldn’t run even ONE !
    The monumental stupidity of this act alone cost us our Industries which is why We now have 95% Unemployment !
    Zanu PF ever avaricious then prostituted Zimbabwe lock stock and barrel to the Chinese and Russians !
    Forty years after Independence from Britain and YOU cannot even keep the “ lights on” ?
    Too stupid…too greedy..too obtuse and too selfish to invest in Your own people lest they make a success of it ?
    Have YOU even taken a walk around Zimbabwe’s Industrial sites …our do You just sit in Your office making these ridiculous sweeping generalisations, while Zimbabweans are fed by Aid Agencies ?
    You, Who charter private jets and have Your medical needs met outside ‘YOUR SOVEREIGN’ Zimbabwe because You have ruined our Healthcare system ?
    NO… It is YOU …all of YOU, Who do not understand economics !
    You are not fit to run a ‘maputi stall’ at a long distance bus stop !
    Apologies to all ‘Maputi Stall’ Proprietors for You would surely run Zimbabwe’s finances better than these blithering idiots !

    Oh !…and for Your information the “Demon” causing the instability in Zimbabwe is Zanu PF !… always was…always will be !