Speaking during discussions at the Chamber of Mines of
Zimbabwe annual conference, Dr Mangudya said Zimbabweans
were “full of negativity” over issues happening in their country, which was not
the case in countries that could be facing far worse issues than those being
experienced locally.
“Let’s cherish partial dollarisation. As we continue under
partial dollarisation, do not undermine the other currency because of US
dollars,” said Dr Mangudya.
“The problem with Zimbabweans is that we always wish
ourselves bad. When you listen to conversations, you just hear people saying
‘zvakaoma’ (things are tough). There is nowhere in the world where it is easy.
“Just this other day, (US) President (Joe) Biden was
concerned over shortages of infant formula in his country. President Biden
invoked the Defence Production Act to address the shortages of infant formula.”
The Defence Production Act that President Biden invoked
requires suppliers of formula and manufacturers to fulfil orders from local
companies before other customers, to remove bottlenecks.
The US president also allowed the US Department of Defence
to use commercial aircraft to fly formula supplies that meet federal standards
from other countries to the US under what was known as “Operation Fly Formula”.
Formula shortages were sparked by Abott Nutrition’s recall
of the product over safety-related concerns, and the general supply chain
challenges that are going on across the world due the geopolitical issues in
Eastern Europe where Russia is undertaking a special military operation in
Ukraine.
As a result of the supply chain dislocations, prices of
gas, fuel and food products have risen by about 40 percent across the world,
with shortages of cooking oil being experienced even in the United Kingdom.
Dr Mangudya said the price of a tonne of cooking oil has
risen from US$900 in recent months to about US$2 000 now, due to supply chain
disruptions. He said since the challenges were global, there was no need to be
“too negative”.
“The power of negativity is weighing down positivity. We
need to be positive. As long as I live, I am positive. I thank the Lord for the
gift of life. Why are we destroying our economy?
“We want to tame inflation; but it is not an RBZ issue
alone, it is not a Government issue alone, it is everyone’s task. Let’s defend
our currency, we don’t want the power of inflation to devour us.
“Who are these people that are pushing up inflation either
at night or in the morning? We are still looking for them and we have suspended
some companies from borrowing from banks because they were engaging in
speculative borrowing.”
Dr Mangudya said investigations into the illicit activities
of the companies are still underway and the nation will be updated in due
course.
Dr Mangudya said full dollarisation was “not a vaccine” or
cure for inflation, but confidence in the local currency was key.
He gave the example of the US dollar which is not backed by
anything, but has value, on the back of peoples’ confidence in it.
Until 1971, the US dollar was backed by gold until then US
President Richard Nixon severed the direct convertibility of the currency into
gold to curb inflation and prevent foreign nations from overburdening the
system by redeeming their dollars for gold.
Dr Mangudya said full dollarisation would be detrimental to
the economy as was seen in the period 2009 to 2018, adding that apart from
Panama which receives support from the US, no other country had full
dollarisation.
“As Zimbabwe, we are on our own and we cannot go the full
dollarisation route. If you were dreaming of full dollarisation in Zimbabwe,
that must stop. Let us stop speculative attacks on our currency. People who
engage in speculative attacks on our currency are the same as witches.” Herald
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