It is now 5 weeks since the Monetary Policy was announced on 20 Feb. During this period, as we foresaw market disequilibrium has increased with the parallel exchange rate firming up to 4.5.T he fixed exchange rate of 2.5 has failed & foreign exchange shortage is huge.
Foreign exchange shortages have seen the return of massive fuel queues across the country. So too are shortages of drugs in hospitals. The disastrous refusal to pay tobacco farmers full US$ auction prices is a by-product of the failed cataleptic Monetary Policy Statement.
The RTGS$ is a failed fraud. One can not have an unbaked currency in the context of a terrible current account deficit where import reserves are less than a week’s cover. RTGS$ is a serious devaluation of people’s savings. It is voodoo economics from a clueless cruel cult.
The solution lies in re-dollarizing the economy protecting people’s balances, scrapping the RTGS$ idiocy & joining RMU in the long term Solution lies in dealing with the crises of legitimacy, of confidence & trust deficit. Emmerson & his lot have failed & failed absolutely.