Zim Cash crisis: MDC wants central governor out

2016-06-10 14:50


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Harare – Zimbabwe's main opposition, the Movement for Democratic Change (MDC) led by Morgan Tsvangirai, has called on the country's central bank governor John Mangudya to step down after his alleged failure "to address the current cash crunch".  

In a statement sent to News24, MDC spokesperson Obert Gutu lambasted Mangudya saying that he should step down and save the little shred of dignity that he had left.

Gutu's remarks came as the country awaited the introduction of bond notes after Mangudya announced early last month that a local version of the US dollar was set to start circulating later this year. 

According to a previous News24 report, Zimbabweans were spooked by Mangudya's announcement, as many saw it as a sneaky attempt by President Robert Mugabe's government to bring back the Zimbabwe dollar.

Gutu claimed that the central bank governor was in fact responsible for the ongoing cash crunch.

Desperate move 

He criticised Mangudya for a "desperate" move to halt the debilitating financial crisis.

"Mangudya’s outline of a raft of measures, in all honesty, is only targeted at curing the symptoms and not the root cause of the liquidity crisis. It is also an absurdity for the RBZ Governor to threaten to cancel licenses of financial institutions violating his recently announced measures to curb the cash crisis," said Gutu.

Mangudya last week said he would carry out raids on embattled businesses and traders to force them to deposit their daily takings.

The bank chief said that those who did not adhere to the directive risked losing their licenses.

But Gutu maintained that the central bank governor was repeating the same mistakes that were made by his predecessor Gideon Gono just before the economic meltdown of 2008, which led to the disuse of the Zimbabwean dollar.

"As if he hasn't learnt anything from the 2008 crisis, Mangudya is foolishly and arrogantly following the same destructive route followed by his predecessor Gideon Gono," Gutu said.

Read more on:    robert mugabe  |  gideon gono  |  obert gutu  |  morgan ­tsvangirai  |  zimbabwe  |  southern africa

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