1. “The problem is about the 95.5% held as RTGS balances in your accounts. Where is it coming from?”
This is a good question which many of us have long asked. The most astounding thing is that it is being asked by the central bank Governor - the head of the monetary authority!
This is a good question which many of us have long asked. The most astounding thing is that it is being asked by the central bank Governor - the head of the monetary authority!
2. In his bid to defend the bond note, the iconic symbol of his tenure as head of the RBZ, Mangundya feigns ignorance as to the origins of the phantom money which is represented as RTGS balances in our bank accounts. If he doesn’t know, who does? And why is he still there?
3. Mangundya speaks as if he is an outsider who has no idea why banks are holding billions of RTGS balances which aren’t backed by any real USD. That’s his job to know! He shouldn’t be asking these questions. He should be answering us as we have been asking for a long time.
4. But even if we indulge him & agree that RTGS balances are the bigger problem that does not make his bond note a success. It must be judged on its own terms. When he introduced it he said it would hold its value at 1:1 to the USD. It didn’t. It isn’t equal to USD.
5. More importantly, there’s the question of honour. Honourable people stand by their word. Mangundya said he would resign if the bond note failed to hold its value. It’s plain that the bond note has failed to hold its value. But Mangundya won’t resign. He won’t stand by his word
