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Biti Dissects New Law On The Use Of Foreign Currency In Zim [Full Thread]

Biti Dissects New Law On The Use Of Foreign Currency In Zim [Full Thread]

Former Finance Minister Tendai Biti, who is also CCC co-deputy president, says Mthuli Ncube should either resign or be fired following the gazetting of Statutory Instrument 118A of 2022 which made the United States dollar legal tender alongside the Zimbabwe dollar.

Biti said Ncube sought to build a career on de-dollarization and the experiment has spectacularly failed after the Government brought back the multi-currency system. Below is Biti’s Twitter thread:

Through SI118A of 2022, Mr Mnangwagwa has issued a Presidential Decree in terms of the Presidential Powers (Temporal Measures) Act Cap 10:20.

Despite his short tenure, Mr Mnangwagwa’s decrees are almost as equal to Mr Mugabe’s decrees over his 38-year tenure.

The new Presidential Decree SI 118A /22 provides for the following:

(1) that the multiple currency regime will exist until Dec 2025 and

(2) that the authorities have the power to freeze any account suspected of Forex abuse in terms of the Bank Use Promotion Act Cap Act

(3) any foreign loan must be repaid in foreign currency

(4) retailers shall not sell goods at an exchange rate above 10% above the prevailing interbank rate.

(5) A fixed fine of ZW$ 20 million may be imposed on any offender.

The Presidential Powers(Temporary Measures) Act which allows a President to bypass Parliament & make laws is patently unconstitutional.

Particularly when those decrees override a specific Act of Parliament. Presidential decrees are an authoritarian abuse of citizens & Parliament.

The re-legalization of the US$ is an embarrassing acknowledgement of the failure 4 years of vigorous pursuit of a de-dollarization agenda that was never going to work.

In a normal country Mthuli Ncube, who sought to build a career on de-dollarization should resign or be fired

There were never conducive conditions for de-dollarization & naturally the experiment failed.

Despite heavy-handedness & the legal force of SI 33 -2019, the economy self-dollarized with 70% of all current transactions conducted in the US$. In this respect, SI118A is old news.

The measure to obligate repayment of loans in currency of disbursements could only make sense if Banks were also obliged to honour deposits in currency of deposit.

Billions of dollars were lost when citizens who had made US$ deposits were now forcibly made to withdraw RTGS$.

The power to freeze accounts and the threatened imposition of punitive fines of $20 million is not only excessive but irrational and patently unlawful.

At the end of the day, it is a lot of hot air. The truth is it is cartels closely associated with the regime that are abusing the system.

Cartels have been the main beneficiaries of the Dutch Auction. They have borrowed billions from Banks which they have used to purchase foreign currency from the auction & from the black market.

The regime knows this. It can’t take action let alone expose its crony benefactors

Truth is economies are not run on coercion & threats. They are not run on ill-thought kick & hope praxis.

They are not run on experiments that reflect deep contempt for any theory or philosophy.

They are run on clarity, consistency and a clear strategic & theoretical trajectory

The truth is economies function on the basis of confidence & the social contract. Economies function on legitimacy.

Thanks to incompetence, inconsistency & total lack of confidence the Zimbabwe economy is in tatters. The country needs a major paradigm. A new beginning.

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25 Comments

Led Zeppelin 1 month ago

Why dissect an illegal law.Go ahead and challenge it in court Mr Know-It-All.Adjustments will always be made depending on which way the economy is going.


Machiavelli 1 month ago

U-turns and constant flip-flopping on policy are no adjustments else.

No point in wasting resources taking ZANU to court on policy matters. It achieves nothing. Presidential Powers Act allows the sitting president to enact temporary laws, but that doesn't compel him to make just laws. He can still make STU.PID laws and get away with it in court of law

cde chipopi 1 month ago

zeppelin kunyange hako uri we zanu pf but Vice President Biti is right.


Blue 💙 1 month ago

Vice president of CCC

Margaret Darling 1 month ago

Biti thinks he is always right


xxx 1 month ago

Biti is never wrong

Da Truth 1 month ago

@ blue camp can't fool Zimbos we no longer have the guts to follow up propaganda ra ra ra bla bla bla speech .You need to get help . Zimbabwe is wide awake look around you winds of change blowing . Can't stop them .

Da Truth 1 month ago

@ blue usadya uroyii nekunyara Biti akaba ma billions EMA diamonds here,,Dutch I fombo auction Ana Biti variko here,,2009 kusvika 2016 waivepi takanakirwa tirikuzonakirwa futi .Keep rolling out yo poison ivy hatakwati uye hatidzokeri sure this time

Machiavelli 1 month ago

@Blue 💙, commendable imagination for your facts and faecal matter for your brains

VZ 1 month ago

Blue 💙 waita mbiri yekuswera paPindula

Blue 💙 1 month ago

He's annoying. Tendai Twitter Biti, he's partly responsible for the mess we are in today as Zimbabweans

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chahototo 1 month ago

all the problems we are having ne currency emanated from the GNU era under Biti's watch


.... 1 month ago

@Margaret Darling, of course he is right. It's only that you are ZANU saka uchifunga kuti he is wrong


Jah🇿🇼Tsvarie-07 1 month ago

The Rtgs$ has failed and Mthuli knows that, how are we gonna get investors when policies change inside one second...


Maparamuro 1 month ago

Zambia never abandoned the kwacha even when they needed to fill a wheelbarrow to buy bread, Mozambique never abandoned its metrical, Angola never abandoned its kwanza. All these countries went through hyperinflation like Zimbabwe.
Of late the Zambian kwacha is almost 1:1 with the Rand of SA. All they changed was their administration.
Zim dollar is not a problem, it's the politics of the country that needs sorting, dollarisation will not provide a solution to our politics.
Prices have been going up in US$s because we are not a productive economy and because of poor administration.
Let's fix the politics and the need for USD will fall away.
Remember 2009, we were forced to make unintended purchases because we had no change for the USD.


greyhora 1 month ago

elections in the Kingdom of Al Saud are you mad?🤣

Machiavelli 1 month ago

Are you @Whose Democracy suggesting that we should emulate despotic leadership styles? There is nothing to be admired about Saudi Arabia. Just that geographic error gave them oil

Whose Democracy 1 month ago

Saud Arabia is a very prosperous country.When did they hold their last elections?

dispenser 1 month ago

Zambian Kwacha is one of the most strongest currency today in Africa bz of a new Democratic President


Neighbourhood Watch Committee 1 month ago

This type of English will result in the British imposing bilateral sanctions on us.
😂😂😂

Chiurai 1 month ago

Bete haana kuitwa minister of Finance ne kuziva zvemari. He is a lawyer. By trial and error ndoku introducer us raakutinetsa nanahasi iri.

He knows nothing about money. Kana muchida kuziva zvemari bvunzai murungu wake Eddie

VA Bete vanohakira kuitsvaga publicity risiri divi ravo. Tsve kuita zvemutemo vatsikinura Jobho anzwa netsikidzi uko ega.


Machiavelli 1 month ago

Please note that Eddie Cross has crossed the floor to ZANU and is now ED's ghost writer for ED's biography

er 1 month ago

but when it comes to doable Biti deliveres both on Law& Finance ? what dd Cross dd which worth emulating for

Mr Politician 1 month ago

Bete he doesn't know anything anofurirwa neicho chemusoro muhombe unogara une zuda


Zuze 1 month ago

Hazvizofanana neuyu aripo uyu, and dehenta risina chinhu anotakurirwa mudengu nevakomana vanopfeka mashizha, vane mab****si esimbi asina huronyo.


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