Biti brands Mangudya a liar over claims of shortage of US dollars

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FORMER Finance Minister Tendai Biti has launched a scathing attack on RBZ governor John Mangudya, dismissing his claims that Zimbabwe does not have enough US dollars to dollarize as lies. Mangudya had said in his Monetary Policy Statement Monday the economy has no sufficient foreign currency liquidity to

support dollarisation.

Biti strongly disputed the central bank chief’s claims an interview with NewZimbabwe.com Tuesday.

“That is not correct. In his own statement yesterday (Monday) he is boasting that deposits in private companies are US$9 billion, so you cannot tell me that if such money is allowed to circulate there is no sufficient money,” Biti said

“We have got lots of it, he is also boasting of a current account surplus in that same statement, when you have a current account surplus it means that you are exporting more than you are importing, therefore your current account is positive,” he said.

“So, it is not a question of the supply of US dollars, it is a question of how that money is being used. They are wasting their time in supporting an expensive non factional auction system that is taking US$40 million a week on the auction systems. No government can afford that. Abolish the auction system, redollarise, stop taking people’s money through exports surrender requirements and most importantly stop corruption,” Biti charged.

“They are stealing money out to Mauritius; they are buying houses for their wives and jets for their children and that is the problem. That statement alone John said there is now US$9 billion sitting in accounts and when the money sits in an account it belongs to the bank and it can do whatever it wants, so there is lots of money in Zimbabwe. When I left, I left US$6,5 billion, and they actually now have more than what was there during the time of the GNU when the US dollar was working.”