Zim dollar a ‘stupid idea’, Biti

Tendai Biti doesn’t think bringing back the Zimbabwe currency is a good idea

By Mthulisi Mathuthu
SW Radio Africa
16 April 2014

Former finance minister Tendai Biti, has warned against the re-introduction of the local currency saying doing so would be the ‘stupidest’ thing for the ZANU PF government to do.

Biti’s comments come after a South Africa newspaper reported recently that the government was secretly working on re-introducing the Zimbabwean dollar. The Mail & Guardian said the aim would be to escape a ‘funding crisis that now threatens to undermine government operations.’

However, Biti told SW Radio Africa’s Cutting Edge programme that the Zimbabwean dollar stood to be rejected yet again by the market. He said:

‘‘While it will be stupid to bring back the Zimbabwean dollar let us remember that ZANU PF is known for doing stupid things. There is nothing that can stop them from printing the Zimbabwean dollar; they can print trillions of that but how will they get them into the market? They might force it on the civil servants but all service providers will reject that money.’

He added: ‘There is no country in the world that has dollarized involuntarily like we did that has been able to get back to its own currency. They tried it in Cuba that failed.’

Biti said Zimbabwe was faced with a serious economic crisis caused by lack of revenue, capital flight, distortion in the balance of payments and over borrowing. Capital flight is when money or assets rapidly flow out of the country as a consequence of an economic situation. Balance of payments is the difference in total value between payments into and out of a country.

According to Biti, at the moment the ratio of exports to imports is 7:1 meaning that for every dollar that is coming into the country seven dollars is going out. He said:

‘That has created a serious liquidity crisis because more money is going out than is coming in’

Biti said the situation has been worsened by the fact that billions of dollars have left the banks and the stock exchange. Moreover the government is collecting less in the form of revenue due to shrinking economic activity. As a result he said, the government has been borrowing to finance the wage bill. Biti said since August last year government has borrowed over $600 million for salaries and the lenders were no longer willing to continue.

Biti added that Zimbabwe needs a ‘caretaker government’ which will rescue the economy from further collapse. He said among the core tasks for that government would be to freeze unnecessary expenditure, repeal the ‘unfriendly’ indigenisation laws and re-engage with the West, including the International Monetary Fund.

10 Responsesto “Zim dollar a ‘stupid idea’, Biti”

  1. Chimbwido Warvet says:

    Biti is a lawyer and not an economist. That he was minister for finance in the last government does not make him a guru in economic issues. Yes, it is premature to introduce the Zimbabwe dollar at present. The economy has to grow first before the idea can be put on the table for consideration.

    The Mail and Guardian is no different from SW Radio Africa, a pirate radio station that spews nonsense from London. Owner and proprietor of the Mail and Guardian, Ncube, a Ndebele based in South Africa, has been well known for propagating nonsense against the Zimbabwe government for years and can not be trusted.
    Until such time this has been made public by the Zimbabwean authorities, this should be considered as the usual scaremongering by these pirate news outlets. This should be treated with the contempt it deserves.

    • Zim1 says:

      Hey you A Hole! if you hate SW Radio so much why are you always on their web page, issuing your bull sh*t statements, we all treat YOU with the contempt you deserve!

      • Chimbwido Warvet says:

        You are not forced to read my comments, you fcking Rhodie. The sooner you stop to read my comments, the better. You do not pay me Mr Rhodie. Ok my pikinini?

    • Tiger Shona says:

      Cw, Biti has said years ago that he does not want to be in politics. But being the patriot that he is, he went there when things got out of hand.
      And he knows what he is talking about.
      Everone know who the main thiefs and murderers in our country are, and you are defending them. You are wasting tax payers money here.
      If you want to do something worth while, go to the closest prison and get yourself locked up. And then you send your resignation in to the CIO offices.
      It is absolutely clear who you are.

      • Chimbwido Warvet says:

        Well, I am aware you can not handle the truth just like most fcking Rhodies do, my pikinini. OYou do not know the Warvet, consequently, your views and opinions about Chimbwido Warvet can only be described as misplaced, have judgementally errors, frivolous, irrational and illogical. As usual, you have been known for being incapable of separating facts from fiction. If you were not a die-hard Rhodie, I could have helped you overcome this shortcoming, but I must admit, I can’t, my pikinini.

        • Tiget Shona says:

          You think because you are always the last one to comment that you are the winner? Forget. Every body has seen you. As you can see on these columns, you are despised by just about everybody.
          And it will be the same in Zimbabwe.
          What you are trying to do is just to try an cover for all the crimes you and your ilk have committed and are still doing.
          And everyone knows it.

    • SlapTheZanuMonkey says:

      You must be mentally challenged to make these comments. What a ridiculous individual you are. I can only put it down to being the maComrades girlfriend for so long during the liberation struglle – they literally banged your brains out!!
      Please go away and shut up you silly little girl.

      • Chimbwido Warvet, says:

        Well, the idea behind this this forum is for individuals to make their own informed comments without first seeking the views of their opponents. Frankly speaking, our views and opinions can never be homogeneous due to our different political philosophies and our understanding of issues that matter.
        If as you suggest, the Warvet is mentally challenged, why don’t you fcking mind your business and leave him alone. You do not have to agree with the Warvet, but if you do not, you should have the decency not to abuse him as you have no right to tell him what to write or to compile comments you want to hear. If anything, you should be prepared to be told the truth even if it pains you, my pikinini.

        As a matter of principle, Chimbwido Warvet has no business in impressing you because you are not his concubine but a Rhodie of no fixed aboard. You now have no country but a squatter in the England. That explains why you get angry over nothing or little things.

      • Zim 1 says:

        Well said! i have never ever seen a comment (lies) from the A Hole …. he would love to be butt plugged!

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