I don’t bank money: Mugabe

Source: I don’t bank money: Mugabe – DailyNews Live

John Kachembere      23 February 2017

HARARE – President Robert Mugabe unwittingly confirmed Zimbabwe’s
worsening rot – which is widely blamed on him and his misfiring government
– when he revealed during his annual birthday interview with the ZBC last
week that even he kept money at home fearing bank failures.

Mugabe also hinted in that televised interview that Zimbabwe should adopt
the South African Rand to mitigate the country’s severe liquidity and cash
challenges.

But it was the nonagenarian’s rare, frank and ready admission that he too,
along with many other Zimbabweans, kept his money at home rather than with
banks that surprised observers.

“They (ordinary Zimbabweans) carry those earnings into their pillows and
briefcases back home and hold funds back home and become reluctant to
release them. Then the banks will not have any resource and will continue
to talk of illiquid banks in the system.

“That is what has happened. Dzimba idzi dzizere nemari (Many homes are
full of cash). Tikati kumapurisa nemasoja (If we instruct the police and
soldiers to) go house by house and dig for the funds that are being hidden
there . . . You will be guilty and I will be guilty.

“I don’t know who will not be guilty here … Dzimwe nguva ukaona tumari
twako wotya kuti aah ndikanoisa uko kuti ndizonoitora mangwana hapana (If
you have savings you will be afraid of depositing them in the bank because
tomorrow you may not get that money).

“So you tend to keep it. It’s not your fault . . . It’s the fault of a
system that has not yielded enough cash. Mind you, the (American) dollar
is not our currency,” Mugabe said.

He spoke as long-suffering Zimbabweans continue to experiences pain and
chaos at banks as they desperately seek to withdraw their money.

This is despite the government’s recent introduction of bond notes in its
desperate bid to improve the availability of money.

On its part, the Reserve Bank of Zimbabwe (RBZ) has blamed the shortages
of cash on rampant externalisation and high imports.

Last month one of the government’s advisors, Ashok Chakravarti,  revealed
that the country only had $304 million in hard cash in circulation,
including $73 million in bond notes.

“If you look at comparative studies from other economies cash to deposit
ratio should be between 10 (percent) to 12 percent. If an economy has got
less than 12 percent, it faces a liquidity crisis … We need $900 million
in cash to have adequate liquidity,” he said.

And as Zimbabwe’s economy continues to die, the World Bank last year
downgraded the country from its list of improved economies to the
unflattering tier of struggling countries, as Harare’s political and
economic turmoil continues to escalate.

In its publication titled Africa’s Pulse, the Bretton Woods institution
said the country had failed to register significant economic growth over
the past few years.

“Zimbabwe’s fiscal deficit has deteriorated as remedial actions have been
limited and this has resulted in the country registering a negative
correlation between the cyclical components of government consumption and
GDP,” it said.

Meanwhile, economists also say average incomes in Zimbabwe are now at
their lowest levels in 60 years, with more than 76 percent of families
having to make do with less than $200 a month.

This, they add, means that poverty levels have reached “numbing levels”,
amid indications that the situation will worsen in 2017, as the government
continues to demonstrate its inability to fix the Zimbabwe rot.

COMMENTS

WORDPRESS: 8
  • comment-avatar

    It could only happen here, a state where it is illegal for a business not to deposit money into a bank but it’s fine for the head of the failed state not to.

    • comment-avatar
      Joe Cool 5 years ago

      Only in Zimbabwe can the head of State contemplate “soldiers being sent to homes to dig for hidden funds”. By next week we could be holding “forbidden funds”, and not “hidden funds” in our pillows.

      • comment-avatar
        Chatham House 5 years ago

        It must be a racist plot from the Racist REgime of South Africa in concert with Joshua Nkomo, Bush and Blair. Mugabe will need to send the Fifth Brigade into Matabeleland to deal with the problem as there are British troops trying to invade the country and threaten the sovereignty. Ian Smith is also involved. Zimbabwe is so fortunate to still be blessed to have Mugabe alive and as fit as a 50 year old to protect Zimbabweans from Nkomo, Smith, Tekere, Sihole, Tsvangirayi, Ncube, Bush, BJ Vortser and Blair. We are so lucky to be protected from all these villains by angels Scoones, Gabriel and Grace.

        • comment-avatar

          Are you possessed ??? Wake up and look around your own back yard !!!! How the hell do you honestly believe that Mugabe is the godsend that you believe he is !!!! .
          Unfortunately whilst people like you spread this garbage the rot will continue . I pray for you and your people that fair and democratic elections will one day take place and your children shall know a wonderful life .

  • comment-avatar
    Ntaba 5 years ago

    This is a wonderful legacy that Mugabe and Scoones are generating for people to remember them. Just murder thousands of civilians and then later destroy agriculture so that those remaining will starve unless they vote for a 94 year old in the next election. Brilliant stuff from both Mugabe and Scoones. I wonder who pays Scoones?

  • comment-avatar
    jongwe 5 years ago

    As CEO of the country,we assume the buck stops with you Cde President.Why do you find it impossible to dismiss those who do not fufill the peoples aspirations and wishes.Are these issues not discussed in Cabinet and approved? There are so many policy reversals and denials that we begin to wonder how the policies are ever formulated in the first place? Passing the buck doesnt wash to a lot of us Mr President especially when the result is a country ablaze in economic misery,malady and despair.More action and less talk Cde President

  • comment-avatar
    Mukanya 5 years ago

    Why banking ,when he controls the key-holders to the apex bank, which he instructs even when he is in the LOO, confirm this with bearer-cheque author Gideon GONO!!

  • comment-avatar
    Ian Smith 5 years ago

    This is pay back time from Bob Matible’s to Zimbos for the many years his countrymen (Malawi) who worked in the sewage plants.
    Zimbabwe is now a malfunctioning sewage plant
    It’s sinks it’s disgusting it’s a disaster!!!!
    For sure not in a 1000 years will he be successful
    The twist is Bob’s hiding the white man’s precious $USA under his mattress like the poor.
    Ha ha ha!!