Cash crisis: we have the solution

 By Daniel Chigundu

MDC-T vice president Nelson Chamisa says his party has the solution to the current cash crisis being experienced in the economy and President Emmerson Mnangagwa only need to consult them.

Zimbabwe is currently facing a worse financial crisis that has seen people spending many hours in bank queues while others are actually sleeping there with the hope of withdrawing their money.

According to Reserve Bank for Zimbabwe Governor John Mangudya, the cash crisis is a result of externalisation, low exports, low foreign direct investments, poor diaspora remittance and unavailability of lines of credit.

In an effort to try and safeguard the little foreign currency that the country is getting, RBZ introduced Bond Notes whose value is pegged at par with the US dollar, however, the two currencies do not carry the same value on the black market.

Although Bond Notes were meant and expected to work within the country’s borders alone, they have somehow found themselves on the other side where they are being used as a store of value.

RBZ is also trying to push the use of plastic money to easy pressure on hard-cash demands and while the effort has recorded significant results, there is still the shortage of Point of Sale (POS) machines in the country.

Speaking on the sidelines of the State of the Nation Address recently, Honourable Chamisa said his party is ready to give alternative views to the crisis should they be consulted.

“Arrogance kills love, we need to be inclusive as a nation, we need to be collective in our approach and we are ready to give them alternative views on how to deal with this cash problem overnight.

“Let them come to us, please bring President Emmerson Mnangagwa to us and we will help him,” he said.

According to former Finance Minister Tendai Biti, the country needs to remove the Bond Notes, return to cash budgeting and return the RTGs balances that have been raided by the government in recent years.

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