Ncube admits to RTGS$ devaluation

Source: Ncube admits to RTGS$ devaluation | Newsday (News)


FINANCE minister Mthuli Ncube yesterday told the Senate that the official exchange rate will soon match parallel market levels and hopefully destroy completely the black market after the RTGS dollar’s value fell to 1:3 on the interbank market during the week.

Ncube was responding to a question by Mashonaland Central Senator Angeline Tongogara, who had asked to inform the House on government policy and measures being taken to curb the foreign currency black market, which she said was currently destabilising the economy.

“What we have done so far is to complete the monetary policy reforms announced on February 22 and the introduction of the market-based exchange rate and designation of the RTGS dollar as local currency,” Ncube said.

“In the last few days the exchange rate has gone up to 1:3 to the US$ and we have made sure that there is a market-based exchange rate whose behaviour approaches the black market, hoping that with time the black market will be eliminated,” he said.

Ncube said the black market was currently also showing signs that there was a shortage of foreign currency in the country.

“I am sure as we trade in tobacco that the black market will diminish. We want to see a Zimbabwe which does not have a black market,” he said.

Mashonaland Central MP Alice Chimbudzi asked the Finance minister to explain the measures being taken to deal with businesses which are demanding payments for goods and services in foreign currency.

Ncube said businesses were entitled to ask for payment in foreign currency as the country was still a multi-currency regime, but said they must rate the prices using the obtaining official exchange rates.

“We are still in a multi-currency regime and so businesses are entitled to demand payment in foreign currency. The RTGS dollar is a unit for accounting purposes, but we cannot say that other currencies are disallowed. Maybe what businesses have to do is to be fair and to convert to the official rate of 1:3, but they are allowed to quote in foreign currency,” he said.

Bulawayo Metropolitan Senator Gideon Shoko also asked Ncube to state measures being taken by government to prevent high price increases as witnessed before and after the increase in fuel prices in January 2019.

“We are trying everything we can to deal with inflation, but I must hasten to say that year-on-year inflation has changed. Our prices will remain high up to October this year and after October, the year-on-year inflation will drop down because the difference will narrow. However, month to month inflation will keep falling. In February it was 1,7% and in March you will see that the figure will drop and I will not be surprised to see prices falling.

“For example, the price of top quality beef used to be $19 per kilogramme, but yesterday the price had dropped to $12. We are doing everything to curb the growth of inflation because we also need to preserve the value of our currency,” Ncube said.

The post Ncube admits to RTGS$ devaluation appeared first on NewsDay Zimbabwe.


  • comment-avatar
    Ndebele 2 years ago

    Well done Mthuli, ED and Eddie Cross. You are all lying to the people of Zimbabwe about the “Currency Reforms” when you are simply stealing the peoples’ money – and have been for some time.  Eddie is the Oldest Zanu Mujiba I know and is not even ashamed of himself! Telling lies by the dozen about how good ED and Mthuli are – and not even mentioning the Queen Bee Oligarchy? Ther must be some pretty big crumbs for Eddie? So, the Zanu Great Robbery started with Bearer Cheque’s, the Trillion Dollar Notes, then Bond Notes and now RTGS Dollars! What next? Well Eddie will be selling the next Zanu Robbery Dollar which they say may be known as an E Dollar? E Dollar will be for Electronic Theft. Well done Eddie and Mthuli – you are spin doctors extraordinaire.

  • comment-avatar
    kutambura hakuperi 2 years ago

    Does those who debate in parliament real care about the salary of civil servants particularly teachers? If you want to see a miserable and thin workers just get to a school. Teachers are starving but silently. Inflation has utterly eroded teacher’s salary as compared to basic needs. Teachers go to work without eating anything. Those basic food items like rice,bread, cooking oil, sugar, flour, matemba, washing powder and some toiletries are nolonger affordable with today’s salary. All those stories about inflation going down next year, meat price going down, are just stories and won’t be seen by a teacher who is at a station 100 km from a major town. Teachers are hungry guys. Something meaningful must be done sooner than later. Recently a female teacher was sentenced 2 years in jail for beating up a child and all ugly names were hailed on all teachers. A hungry man is dangerous to work with to say the truth. I want to believe that she was hungry and easily lost her temper. It was unfortunate to unexpected child who became the victim. But if this discrepancy between salary and price is not solved pass rate is at risk especially in rural areas. The government will only have itself to blame.
    Why do we have to allow this? Let’s talk it over the radio and social media may be it can appeal to those in charge.

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    ace mukadota 2 years ago

    Since 20 February 2019 – the day RBOZ admitted the rate at 1 to 1 was rigged the RTGS or Zim dollar no 5 has lost 67 % of its value at the RBOZ rate.
    The man at roadport or street rate says it has lost about 75%