President Emmerson Mnangagwa’s administration has pointed a middle finger at the recommendations made by the International Monetary Fund (IMF) on measures to ease inflation in Zimbabwe.
The Fund’s staff team led by Dhaneshwar Ghura conducted a mission to Harare during December 1-15, 2022, in the context of the 2023 Article IV Consultation.
At the conclusion of the mission, they made a number of recommendations aimed at helping the southern African country curb the skyrocketing inflation. One of the recommendations was for the government to do away with the gold coins.
“A near-term policy imperative is to sustainably anchor macroeconomic stability,” read the statement by Mr. Ghura.
“In this context, Fund staff recommend accelerating the liberalization of the FX market, including through the removal of restrictions on the exchange rate at which banks, authorized dealers, and businesses transact, addressing the Reserve Bank of Zimbabwe’s quasi-fiscal operations to mitigate liquidity pressures; maintaining an appropriately tight monetary policy stance ter durably restore macroeconomic stability and ensure social stability; restoring the nominal anchor for monetary policy, including through the use of appropriate interest-bearing instruments to mop up liquidity and winding down the use of gold coins; and maintaining a prudent fiscal stance.”
But speaking in Parliament on Thursday, Zimbabwe’s Finance Minister Mthuli Ncube dismissed the IMF recommendation on gold coins pointing out that that their invention was “assisting in mopping up liquidity”.
“The measures we have taken in the last few months, in the 3rd and 4th quarter and we have maintained those measures, are aimed at exactly that and that is why you are seeing stability in the domestic currency, the narrowing of the gap between the official and parallel rate,” he said.
“We are also seeing month-on-month inflation beginning to fall followed by year-on-year inflation. So the policies are working and the positive real interest rates are working and the fiscal tightness that we have been practicing is working.
“The introduction of the gold coins which are also assisting in mopping up liquidity while being a social value preservation for investors are all contributing to deal with inflation and currency volatility.
The Reserve Bank of Zimbabwe Monetary Policy Committee Member Persistence Gwanyanya said : “1) MPC and RBZ never viewed Gold Coins as a silver bullet but necessary intervention at the time. 2) The idea of gold coins was mooted to reverse the accelerated depreciation of the ZWL.”
Sometimes its good to give an ear to true facts hamungazive zvose mkona listen to the voice of reason bisai scuff mumbo reasoner mkoma aaaaha
Dion Shumba the same true facts akaudxwa Bob kuti zim dollar rizodonha nxàaaaa open your eyes ,what they want is to see us suffering and with a begging bowl nxaaa look at lybia now
Dion Shumba l wish u had said everything in English so I could understand all, anyway u making some sense
Sam Sam Links what made Zim dollar to fall was unbudgeted payment of War veterans of which Chidzero was forced to do so by Mugabe & his executive!
So the inflation of Gono’s era you will blame IMF!
With such mentality Zanupf will rule for ever!!
Rutendo Benson Matinyarare
Ende futi. Confused pipo
Keep this tweet until the real reason for gold coins manifests. You will be shocked
Mthuli Ncube knocks back IMF recommendation to get rid of gold coins – Nehanda Radio – https://t.co/JbbqIxYe4D https://t.co/hWN6FqmT2s
Those measure enunciated by IMF are at best (1) inflationary (2) declerate economic stability and growth and gross external interference in our macro economic policies. Nonsense. You cannot dictate that interst rates be brought to minimal levels given where the YOYear inflation was. All major economies bumped up interest rates beyond inflation.
Maurice Maswiswi what would a Zanupf Shiite say!!
Ncagu Sbhamusogodo KaSibungusodaka…thanks for the badge of honor. Maybe xmas comes early on our shores this year. But seriously….those IMF recommendations are whack given our macro economic environment. Recommending discontinuing gold coins…come on. That measure mopped up excess liquidity so why go back to EGYPITA.? Read and look at where they want to lead us…hyperinflation mode. Pansi labo
IMF should not be listen because they don’t have any good intentions with africa to heel with them
Clever Khanye in which way?
Ncagu Sbhamusogodo KaSibungusodaka Do you know we pay different money when you are paying back the loans than Europe. Do you know that they are the ones mislead Mugabe by esapu
Clever Khanye how do expect every country should pay back the same!
Thus undiluted stupidity !
This are monetary institutions, just like when you borrow money from CBZ,each individual or company negotiate his own loan & interest payments!
When you approach a bank for a loan, you need to agree in how , or what you are going to do with that money!
Your personal mismanagement of it, is not their fault!
1st ESAP( Economic Structural Adjustment Program) was a Zanupf program of which they approached IMF for funding!
ESAP was from 1991 to 1993!
Can you say what bad really happened with Zimbabwe economy in that period!
Is it the IMF which was responsible for the looting of War Veterans compensation Fund !
Was it the IMF that paid War veterans ( after the looting of War Veterans compensation Fund) lump sum of which Chidzero was forced to when it was not budgeted for!
Was it the IMF that looted & brought parastatals like CSC,GMB, DMB, NRZ to the ground!
With people like you who will accept & defend excuses & failures of our corrupt leaders, Africa will remain a dark continent!
Ncagu Sbhamusogodo KaSibungusodaka you talk nonsense with that mind of self hate why you hate yourself
Clever Khanye it won’t make sense to a grade 4D like you!
Zanupf propaganda has clouded your reasoning!
Ncagu Sbhamusogodo KaSibungusodaka And you are clouded by false and hate no self thinking be free don’t follow politics but follow the truth. I don’t belong to any party but I stand for the truth
Imf brought isapu
Gope Leonard Sandoga IMF is not Robert Mugabe & Zanupf!
ESAP was Zanupf program & you blame IMF!
Ignorance is dangerous!
Ncagu Sbhamusogodo KaSibungusodaka I didn’t know ,we learn everyday.
Gope Leonard Sandoga the ESAP was to change Zimbabwe ‘s command economy to free market economy!
Actually the problem is not IMF but corrupt African leaders!
They borrow money from IMF or the world bank,
60% of the money goes to individual ofshore accounts & 40% goes to the national fisc!
How does a national of 40% generate revenue for a sustainable development & at the same time repay the borrowed money!
So the cost of borrowing will be more than what the national production can afford!
Then we the people blame the aforementioned institutions!
Ncagu Sbhamusogodo KaSibungusodaka woo well said understood
More Gold Mr Mthuli Ncube
He has a point
Arikutoshandasu ma gold coins acho
They call themselve educated , but being used by madofo , so how can they grow the economy
Selfish zanu pf people as long as they benefit from a scam its perfect, , inoti pangu pangu ngoma hayiti panhingi panhingi
Thick headed as usual 🤮🤮🤮🤮you take some an leave some🤮🤮🤮🤮