MinBane

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Archive for the category “Economy”

RDC: Le Congo – Glencore, Gertler, Gecamines: $150 Millions en Peril (01.07.2020)

Brexit: A Letter from Mark Francois, Chairman of the ERG to Michel Barnier (26.06.2020)

Zimbabwe: Dollar Dollar Bill Y’all Part II

Yesterday, the government unleashed a sudden new approach to the Mobile Money market. A market it has already overtaxed. The state is already struggling to launch a currency and keep the inflation down. The Financial Policies has been a train-wreck under President Emmerson Mnangagwa.

They have at one moment … banned foreign currencies and later opened for it. They have revised the Bond-Notes. They have made a own special currency through the Mobile Money Banking, the infamous RTGS Dollar. Relaunched Zimbabwe Dollars, both coins and banknotes. While opening up again for US Dollars in trading.

All policies has been a back-and-fourth pin-pong game with no winner. The Reserve Bank of Zimbabwe looks dumber by every minute. The Ministry of Finance doesn’t seem up to par and the whole Cabinet Decisions Matrix to fix it. The state is juggling ideas and hoping none of the balls will fall. However, their hands are shaky, their forehead filled with sweat and the legs are tired. That is why its just a matter of mental fatigue before the balls falls all tumbling to the ground.

The Financial Policies of the Republic has gone bonkers, they are bananas and ridiculous. Its like a den of thieves are supposed to be accountable for the gold reserves. They are just waiting for the moment people are preoccupied to empty the national treasures and get rich quick.

Every move made hasn’t made it better. Except made things worse. Things costs more, salaries are not following the cost of living and incapacitation of civil servants are rampant. It is just like the state trying to figure out new methods to trick the system and hoping it is a free-for-all heist. While hoping no-one figuring that out.

There is no trust, there is no balance of powers and the measures made is for selfish reasons. The ZANU-PF doesn’t come with accountability or transparency as their policies are happening over night. The banks, the operators and the forex’s are never prepared. They are just liquidated or consolidated. These are just caught off guard with no forewarning.

The shops and the citizens are bamboozled too. The state is just shifting between the measures so quickly and without reason. In hope that they suddenly will find the magical bullet to kill the beast. However, they got no chance to beat it. Since they are walking blindly around and hoping sooner or later one of their ideas will stick.

We can anticipate more havoc from the Ministry of Finance and the Reserve Bank of Zimbabwe. Because they are clearly not trying, but guessing. Hoping and praying that they will find the secret way into Narnia. They cannot find the closet or configure how to use the door-handle to open it. It is a challenge for them and we have to wait and see. Peace.

Reserve Bank of Zimbabwe (RBZ): On the Suspension of Monetary Transactions on Phone Based Mobile Money Platforms (27.06.2020)

Zimbabwe: MDC-Alliance – Statement on the Unlawful, Ban on Mobile Money Operations & the Suspension of Zimbabwe Sotck Exchange (27.06.2020)

Zimbabwe: Press Statement – Suspension of Monetary Transactions on Phone-Based Mobile Money Platforms (26.06.2020)

Opinion: Is Amin relevant in 2020? [Mr. 1986 thinks so]

Uganda’s economy had collapsed completely during Amin’s time. There is no economy in the world that collapsed completely like Uganda. To revive this economy, our priorities were different from other neighboring countries. As a country, we budget to build a durable base and a viable political unit that will defend us. It’s like building the armed forces, if you don’t have an army, you don’t have education, security, health, etc”Yoweri Kaguta Museveni to US and Belgium Ambassadors at the Entebbe State House on the 25th June 2020

Sometimes I wonder, how come these folks are still in power and leading nations? Yes, we should never become so ignorant or forget our history. That is not my point here. History is important so we can learn and not do the same mistakes as our forefathers. Also get enlighten to create a better tomorrow.

However with that in mind, the statement released from yesterday’s meeting with US and Belgium Ambassador from the President is worrying. Since he needs to go back 40 years in time. He needs to go back to the time before the second stint of President Milton Obote. That’s how far he goes to give himself credit.

The President wouldn’t have gotten all the goodwill and the revival of the economy if it wasn’t for donors, grants and direct aid for years. The President was a donor darling in the 1990s and was blessed from everywhere. He even started some positive initiatives, which he never really finished. Just like the Standard Gauge Railway, Universal Primary Education for all and so fourth.

There are plenty of pledges and promises never realise or actually do. The President has promised the world, a fundamental change, but that hasn’t come. The King never let thy Kingdom Come, thy will be done. He has eaten in office and forgotten his vision, his vision and the 10 point programme.

That he praises his economy, when the budget is mostly financed with debt, raising loans and grants for development projects. There are over half of the budget covered with debt and already paying trillion of shillings a year only in interests alone. Therefore, him praising the economy is a bit far-fetched when deficit financing is the key to operate. You know something is up and that is why he needs to sweet-talk the dignitaries yesterday. They are the ones giving him the needed funds to cover his life-style and pay off his cronies.

The state have not the capacity nor the revenue to continue at the current state. That is why its loaning itself to oblivion. That is why the budgets are crushed and suddenly lacking funds for salaries, arrears and whatnot.

If he had so many achievements he wouldn’t need to beg foreigners for donations and grants. He has done this for over 3 decades. If he was such a great head of state the state would have been able to gain natural revenue on itself for its expenditure. However, we know that is not the case and his not interested in that.

I think if Amin’s reign is relevant for his achievements. today Yes he made peace, but a fake peace. A peace that is fragile, because he needs the army in every instance and at his beckon-call. There is very little remaining of his achievements. They are dwindling away and his merits on civic, social and political levels are being traded away for the cost of his prolonged reign. It is like he wants to burn the little efforts of the past on the glory of being the ruler at present day.

The rest wasn’t all him, but he tries to take credit for everything. He wants so badly to be the father of the nation, but lost his grip. Since he lost foothold of reality and of the course the Republic needed.

So in this regard, should the old man with the hat still be claiming greatness in comparison to Amin in 2020? Does the younger generation, the new electorate really care about that? Does the future hold another destruction of society and another civil created out of the space post-Amin?

If so, then the merits of Museveni is all at question. As the warnings that he might rejuvenate a similar fashion of elections like in 1980. That is how we are repeating the same ills of the past and letting one tyrant continue the tyranny. This is why the President wants to praise his achievements after him. Everyone will look golden if they are trying to compare themselves to Amin at this point.

Mr. 1986 should be careful about talking about his record, his achievements and his reign. The President has had his time. The time that he hasn’t spent wisely, except for finding ways to overstay.. Peace.

Djibouti: Creation of the Djibouti Sovereign Fund (DSF), a key instrument for inter-generational saving and modernizing the national economy (25.06.2020)

Reserve Bank of Zimbabwe: Press Statement on the use of Bank Notes and Coins (19.06.2020)

Zimbabwe: Dollar Dollar Bill Y’all!

Cash rules everything around me

CREAM, get the money

Dollar dollar bill, y’all” – Method Man on Wu Tang Clan’s – ‘C.R.E.A.M’ (1994)

I don’t know and I cannot count how many currency and monetary reforms that been since the launch of the New Dispensation from the Mnangagwa Government. What I do know? There’s been plenty and countless of initiatives in concern with the currency. Which was made to stabilize and supposed to ensure a steady rate in the inflation. However, that ship has sailed, as the rates are over double-digit and its not getting better.

The Zimbabwe government has stopped and reopened opportunities to have foreign currencies in trading. Today is not different. Just like a year ago in June they ceased to trade with United States Dollars. Today they are returning through bank action and able to show prices in Zimbabwe Dollars and US Dollars in the shops.

The return of this imminent. As the value of the Zimbabwe Dollars are depleting, the inflation is out whack. The money is getting devalued and destroyed. The state knows, the Reserve Bank knows this and the people know it too. This is not new, but the normal mockery of financial stimulus and fiscal responsibility, which causes this damage on a regular.

There is no trust in either the Ministry of Finance nor the Reserve Bank. All institutions are running a shit-show and hoping to trade insults to save their lives. They are all just pinning on duck and hoping it doesn’t quack. It is like an endless circle of Bond-Notes, RTGS-Dollar, Zimbabwe Dollar Notes and unattainable monetary polices in concern with the US Dollars.

In June 2019, the President proclaimed this: Except that if you want to transact in any shop, if you want to buy your tea and milk in dollar or euro, then you must go to bureau du change” (Mnangagwa, 25.06.2020).

Now a year later the opportunity to use US Dollars is back and the promise of “normalcy” is a far-cry from reality. As the state, the institutions and the men behind the monetary policies cannot figure out the trick of the trade. They don’t have the ability nor the slightest idea on how to stable the economy nor ensure any trust in the currency they are printing. It is like a gift of misgivings and lack of integrity.

The whole state could fix this, the men behind this could really try to do something. They should first quit their day-jobs, because they are not up for it. These people have tried and tried. Done so much work for nothing. They have been jibber-jabbing for so long without any luck.

So since nothing is working. We can all just put on the old classic Wu Tang Clan joint ‘C.R.E.A.M’ and sing: “Cash Rules Everything Around Me/Cream, get the money/Dollar Dollar Bill, Y’all”. Peace.

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