Zimbabwe News and Internet Radio

Mugabe & Gono ignored Biti on currency?

By Denford Magora

The Dutch Prime Minister said his country would not give Zimbabwe any of the money it is seeking. Instead, they will continue with their humanitarian assistance. The denial of aid to Tsvangirai is celebrated in huge front page story today in the Government newspaper, The Herald. It sounds like they like the fact that he got nothing.

Yet again, we are proved right. (No, we do not get tired of proved right on this blog and we never tire of pointing it out). As you probably know by now, it was announced yesterday that banks in Zimbabwe have now converted Zimbabwe dollar accounts on their books into US dollars.

This blog broke that news on JANUARY 23 2009.

At the time, we were not sure what exact predetermined rate would be used by Gideon Gono, but we now know. The accounts have been converted at a rate of Z$6 quadrillion for every US$0.11. That means for every six quadrillion Zimbabwe dollars in your bank account, you will get eleven United States cents.

The article I refer to above, writte on January 23, explains the thinking that informed this strategy back then. Still, this is money that is being conjured up out of thin air, so to speak. Tendai Biti and Gideon Gono will have to find the US dollars to fund those accounts they have turned into US dollar accounts.

Where is the money to come from? Tax revenue is not even enough to pay the salaries of civil servants. Will they use the one billion dollars they have secured from African banks to fund this freebie carnival? What is important for you to understand here is that the Reserve Bank Governor has continued with his and Mugabe’s plans as if Tendai Biti did not exist at all.

Gono has defied his principal, Tendai Biti, who announced only recently that the Rand would be the base currency (or currency of reference) for the country. Gono announced yesterday that this is not so and instead, as the Monetary Authority, he has declared the US dollar to be the base currency of Zimbabwe. All the banks in Zimbabwe have complied with this directive, making the UD dollar Currency Number 0 in their systems (base currency).

The Zimbabwe dollar is currency Number 43, which means it will not even be accepted as legal tender in Zimbabwe anymore. I guess Tendai Biti will just have to put all of that in his pipe and smoke it.

  • Innoe

    1.How do u know that Biti was by passed? Even if it was done without his (BITI) authority, how many things MDC-T are doing without Mugabe's authority yet he is the President, and u do not complain about them?

    2.Zanu (PF) is not celebrating that the Dutch snubbed Morgan -NO!! The article in the Herald just tries to point the hidden agenda behind the West, i.e refusing to help to further their own political agenda!

    3. Be balanced in your reporting, seems as if you guys are out there to destroy ZANU and prop up MDC.

  • munyar

    Mind rendering your paper useless if you don't report correct stuff. Not many people would want to read the Herald because of that. You better be correct and report things as they appear rather than as you want to attract readers.

    Its my last time to comment on this

    Munyaradzi Zhawu

  • Cde Max

    When Tsvangirai and his quisling party were agitating for sanctions, the Dutch and the rest of the white world were all ears and eager to assist because sanctions served their interests the most. Until recently, the MDC was still denying the existance of sanctions on Zimbabwe. Now that MDC is in govt they, realise the economy has been wrecked by the sanctions they called for. Because regime change has not been achieved, the west will be very reluctant to lift the embargo. I hope they add Tsvangirai andd his 'cronies' to the 'targeted sanctions' list. The struggle continues.

  • Jojo

    Can someone in Zimbabwe shut this fool's mouth or what? Do something to him thats makes me feel good. His mouth and gossip is so irritating.

  • Dave Wood

    Comrades – We, the white folk of this world, find your continent fascinating. One minute you despise the white man, then the next minute (only when you want something) do you then embrace him with open arms!Do yourselves a very big favour – buy yourself a book written by a black Kenyan. It is titled “The Capitalistic Nigger”. My gosh – what an eye-opener, and how he has hit the nail on the head! Why is it, that when you kick the “whiteman” out of your countries in Africa – the place falls apart over night? I am intrigued as to how this works. Do you honestly believe that you local Zimbabweans can produce what the white commercial farmers did, on the farms that you thugs stole? I doubt it! In fact, I honestly couldn’t give two hoots if you did – because I am currently making millions of “proper dollars” supplying your Government with much needed food aid!I wander why South Africa is so vibrant – food on the shelves, stable currency, jobs, world cup soccer and so the list is endless. Is that possibly because there are several million “White folk” in South Africa, and that they are pretty much still in the driving seat down there, with regards to the economy – or am I missing something here? Wake up and smell the coffee – in three years time you will be ripe for “re-colonisation”. Why – because you will all be very very very hungry!!!! I will be waiting for that day – “The circle will always turn”.God bless you for now

  • mutsa murenje

    i think people have lost the gist of the matter. this babyish way of engaging each other is destructive. we want reconstruction of the battered economy of zimbabwe. transform of our society through integral development is what we want. why then should we be abusing this column? if we have nothing constructive to say it's better we keep quiet. you have brought the name of our beloved country into disrepute. blacks and whites are all people. none of them is more human than the other. ko tinodirei kudaro veduwee? let's lead by example. don't feel good by insulting other people. we want responsible and constructive comments. you don't realise how much we want things to change for the better. we want food, affordable education for our children, access to medical care, affordable housing among other things. munorwadzisa moyo wangu. musadaro please. zimbabwe ndeyedu tose and all of us have a responsibility to do something for this great country.

  • mutsa murenje

    transformation of our society

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