The shadow cabinet of the Movement for Democratic Change led by Morgan Tsvangirai met Tuesday to discuss cash shortages affecting the transacting public and criticized plans by the central bank to introduce bond notes saying the move was politically-motivated.
Following the shadow cabinet’s meeting held at Tsvangirai’s residence in Harare, cabinet and Tsvangirai’s spokesperson Luke Tamborinyoka, told Studio 7 that his party’s expressed concern at the Reserve Bank of Zimbabwe’s plans to introduce bond notes, saying such a move was detrimental to the country’s economic growth.
Tamborinyoka said the shadow cabinet felt that the proposed introduction of the bond notes that has been criticized by several Zimbabweans was a ploy by the Zanu PF government to print money to enable it to pay civil servants’ salaries and for other services because the government purse is “empty”.
But central bank governor John Mangudya told Studio 7 by phone that the RBZ does not make key fiscal decisions along political lines. The central bank chief added that his bank’s proposed intervention was meant to ease the cash shortages being experienced by members of the public.
Contacted for comment, Zanu PF spokesperson Simon Khaya Moyo requested questions in writing but he had not responded at the time of going to air.
Tamborinyoka says the MDC-T has called for an urgent national executive Thursday to map the way forward, noting that this issue now requires a political solution.
But political analyst David Masunda says he does not see the government backtracking on its plans to introduce the bond notes.
Tamborinyoka said his party wants the country to maintain the current multi-currency regime, arguing that Zimbabwe’s economy was not yet stable.