By Alois Vinga
THE Zimbabwe Congress of Trade Unions has written to the Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya, urging him to resign after his introduction of bond notes failed to solve the liquidity crunch and triggered inflation.
In a letter dated September 11, 2017 signed by secretary general, Japhet Moyo, the ZCTU reminded the central bank governor of the pledge he made last year to resign if bond notes failed to turn around the economy’s fortunes and mitigate the cash crisis. “You recall that last year we had a meeting with you just before the introduction of bond notes wherein we forewarned you over the adverse effects of bond notes on the country’s workers and general populace.
Nevertheless, you remained stiff-necked and vowed that if the idea failed you would hand over the baton,” reads part of the letter. “As we write to you, it is our hope that you have not suffered from selective amnesia as it is clear that you have been also observing the dismal monetary trends since the introduction of bond notes.” The ZCTU secretary general added: “Dear governor, being a doctoral degree holder it did not require a rocket scientist to knock it at the back of your mind that both history and economics had since established that your initiative was bound to fail.
Instead, there were better options to pursue like the adoption of the rand and lobbying for a business conducive environment which would resuscitate our local manufacturing sector.” Moyo said bond notes had failed to resolve the cash crisis. The bond notes, introduced late last year, had instead exacerbated the liquidity crunch, which has increased over the months, Moyo said. He warned the central bank governor that plans to tighten regulation and force companies to accept payments using bond notes would only worsen the situation. email@example.com