Gono delivers...another damp squib.
Against the damning background of a controversial mercedes benz, a hardly complentary expose on his meteoric rise, clashes with the finance minister Herbert Murerwa, and the rapid unraveling of his policies, Gono was constitutionaly mandated to deliver yet another monetary policy statement yesterday. Deliver he did, but certainly not a policy statement.
The only change, a cut in money supply which doesn't count becuase in an already highly speculative economy, speculation will increase by a factor equal to the decrease in money supply. Translation; our record breaking inflation will skyrocket this year if Gono sticks to his promises. Add to that, Gono's tepid appeals to the government to sell off none performing parastatals and his call for action from other stakeholder, and what you get is nothing.
Here's what Gono did, or didin't do in his policy. Lending rates; stagnant at 500%. Exchange rate; shunted at long outdated paltry rates, and nothing else. Correct me if I'm wrong, but last time checked the sum of nothing is, well, nothing. If anything, this last statement was notable because it was Gono's thinly disguised concession to Zimbabwe free (sometimes called black) market. (more...)
Zimbabwe, Zimbabwe Economy,
The only change, a cut in money supply which doesn't count becuase in an already highly speculative economy, speculation will increase by a factor equal to the decrease in money supply. Translation; our record breaking inflation will skyrocket this year if Gono sticks to his promises. Add to that, Gono's tepid appeals to the government to sell off none performing parastatals and his call for action from other stakeholder, and what you get is nothing.
Here's what Gono did, or didin't do in his policy. Lending rates; stagnant at 500%. Exchange rate; shunted at long outdated paltry rates, and nothing else. Correct me if I'm wrong, but last time checked the sum of nothing is, well, nothing. If anything, this last statement was notable because it was Gono's thinly disguised concession to Zimbabwe free (sometimes called black) market. (more...)
Zimbabwe, Zimbabwe Economy,
Labels: Life in Zimbabwe, Zimbabwe, Zimbabwe Economy
