Zimbabwe: Mthuli Ncube’s Measures Breach Law, Expose RBZ-Treasury Fall Out – Says Biti

Former Finance Minister Tendai Biti has said the latest series of economic measures announced by Mthuli Ncube expose the rift between Treasury and the Reserve Bank of Zimbabwe, adding the latter needs to be disbanded.

In the fresh set of measures the weekly auction will be limited to US$5 million, government agencies will ‘substantially’ collect fees in ZWL, all customs duties are now payable in local currency except designated ‘luxury goods’ and the liquidation of all the foreign currency earned through exports which remain unused for a period of 90 days among other measures.

Ncube’s latest economic stabilisation measures came barely two weeks after the Treasury boss scrapped duty on all basic commodities imports and ordered transfer of government loans from the central bank as part of a cocktail of measures aimed at strengthening the ZWL which is fast losing value.

According to Biti, Ncube’s policy statements attest to the deteriorating relations between the two financial administrators.

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“Mthuli’s new measures are the latest expression of a desperate regime arrested by a panic attack, schizophrenia and cluelessness,” Biti said.

“In the main they are illegal measures which require Parliament not only that they reflect a cataclysmic fall out between the Central Bank and Treasury.”

Biti called for the disbanding of the RBZ and establishment of a Currency Board.