By Professor AGO Mutambara
Prof Authur Mutambara has accused ZANUPF and its friends of looting public funds using the Gold Coin ponzi scheme. The Former Deputy Prime Minister described the gold coin which was launched yesterday by the Reserve Bank of Zimbabwe as a self-enrichment scheme for the elites.
Here is how it works as explained by Mutambara.
You take your USD to the parallel market and get RTGS at, say, 1USD to 950.
You go and buy the gold coins in RTGS at 1 USD to 441 (the gold coin exchange rate) and immediately make a profit of more than 100%.
That is the gold coin arbitrage opportunity.
Is this not common sense?
It gets worse!
For the elites who are connected and have access, you don’t have to involve your hard-earned USD in the first part of the transaction.
You take your RTGS to the RBZ and buy the USD at the auction rate, say 320.
You take this ill-gotten USD to the parallel market and buy RTGS at 950.
That’s a profit of 200%.
Then you go and buy your gold coins at 100% profit, as explained before.
So the potential benefit to the elites (the connected) is as follows:
Start with 10 000 USD it becomes 30 0000 USD then it becomes 60 000 USD.
From 10k USD to 60k USD.
WITH NO PRODUCTION.
This is quite a self-enrichment scheme for the elites.
Just to clarify:
To get started, the elite person takes their 10k USD to the parallel market and buys RTGS at 950.
Then they go to the RBZ and buy USD at 320 (auction rate).
Then they go back to the parallel market and buy RTGS at 950.
Then they go for the gold coins and pay in RTGS.
10k USD to 60k USD.
It is shameful.