Government is running a pyramid scheme: Tendai Biti

by Daniel Chigundu
People’s Democratic Party (PDP) President Tendai Biti says the country is facing a serious financial crisis such that people are transacting using fictitious money which doesn’t exist in banks.
A lot of people have been experiencing torrid times in trying to access their money from banks but have been having little success, with such banks as FBC and CBZ giving US$50 a day.
Reserve Bank of Zimbabwe (RBZ) is currently promoting the use of plastic money to help beat the cash crises which has seen winding queues resurfacing at various banks in the country.
Addressing delegates at the National Transitional Authority (NTA) public debate forum, Biti said there is no real money to back transactions done using RTGS and debit cards.
“We have a fiscal crisis, the banking sector is on the verge of collapse, we have been running a ponzi scheme since the beginning of the year because all of you are trading in RTG balances, some of you have debit cards so we are all trading hot air but real money is not there, that is a ponzi scheme, when you trade in fiction makasa.
“So if someone were to demand that money then the pyramid will fall, this Government has been running a ponzi scheme, a pyramid scheme and they have created artificial money of over US$2 billion if all of us were to go to the bank and say honour the balances in our banks that money is not there, it’s just hot air, we have been running a ponzi scheme.
“And that is a crisis, so great a crisis that they have to return the Zimbabwe dollar, because to many people not returning the Zimbabwe dollar is the difference between Chikurubi and freedom because they have to monetize this gap they have created, there is a huge gap that has been created,” he said.
The former Finance Minister in the now defunct inclusive Government added that the reason there is cash shortages in the country is because Government raided bank balances kept at RBZ, Nostrol Accounts and RTGs balances.
Government is also set to introduce Bond Notes into the economy as an export incentive and as a way to increase liquidity and prevent externalization of cash.
Owing to the multi-currency system that was introduced in 2009, most counties in Sadc region have been looking into Zimbabwe for ease access of US Dollars.

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