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Have pity on Gono

ONE must have pity on RBZ governor Gideon Gono. He really does not have a clue about the job he is so stoically trying to do. And to add to his woes his hands are tied behind his back by equally clueless Zanu PF stalwarts (sometimes very fortunately for the re

st of us).

Here is a man who allows the economy to be held to ransom by cash barons who can do so for as little as US$4 900, or about a quarter of the price of a second hand bakkie.

We must take our hats off to the efficient police who managed to apprehend the evil woman who so greedily ties up a whopping $10 billion in the money Gono is trying so hard to print. The fact that she would hold it for less than a couple of hours as she trades it on to another unscrupulous person trying to eek out a living by trading in the black market is completely lost on Gono, the police and the magistrate. (One must of course ask how the police could so efficiently apprehend this hapless woman and in the same breath not be able to find out who she got the $10 billion from or who she gave the US dollars to — we all know they can torture any confession out of anyone.)

More seriously is the misconception Gono has of the value of the money he is entrusted to print, issue and oversee. He says that there was a whacking $67 trillion in circulation but only a few trillion was getting back to the banks, so the rest must be in the hands of hoarders. This amounts to a mere $6 million per resident or $12 million per adult.

As the banking sector has been totally thrown into disarray by Gono’s policies almost everyone deals in cash, so of course there is not enough in circulation to go around.

Even 10 times his $67 trillion would not help much. The Reserve Bank even “restricts” individuals to draw four times the amount at $50 million. He probably pegged the $67 trillion when he re-issued the currency and it was worth some US$135 billion then. It is now worth about US$20 million. Hardly enough to provide cash for some companies let alone a country.

Gono needs to either resign with his head held in shame or stop devoting all his attention to his vindictive blame game, get his calculator out and start running the financial affairs of the country properly.



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