adminCharity Ruzvidzo Business Reporter
ECONOMISTS have described the Reserve Bank of Zimbabwe (RBZ)’s $5 compensation to Zim-dollar account holders as unfair and miscalculated.
This follows the announcement by RBZ governor, Dr John Mangudya, last week that the government had set aside $20 million to compensate depositors who lost their savings and pensions during the Zimbabwe dollar era with a flat $5 per account.
Economic analyst Davison Gomo said $5 was not a fair amount considering that account holders had different amounts in the banks. “The $20 million amount is a blanket figure for all account holders. However, the $5 per person allocation isn’t fair especially after considering these account holders had different amounts in their banks.
“Some people get more or less than they had in their accounts. This will destroy confidence in our banking sector,” he said.
Gomo said while the $5 figure demonstrates that government acknowledges responsibility for the erosion of depositors’ funds, the amount could not be regarded as compensation.
Another economic commentator Ephraim Makara said banks should share the burden of paying back depositors’ lost savings. “Banks in the country must also be held accountable for the money owed to Zim-dollar account holders. Most banks invested the money buying assets like cars and buildings. They must sell those properties and give people their money back,” he said.
Bradwell Mhonderwa said central bank governor Dr Mangudya’s timing was wrong. “We’ve liquidity challenges in the country. There’s less inflow of cash. Governor Mangudya must’ve waited until a period when our economy at least shows signs of improvement or has improved. The $5 amount would have more value than it has now,” said Mhonderwa.
Affirmative Action Group vice president Sam Ncube said giving depositors $5 was “nothing at all”.
“The RBZ governor must consider that these were life- time savings for other people. $5 will not go as far as buying food for a family for one day let alone a month. It’s better if he doesn’t give anything. This money is very little,” said Ncube.
However, BancABC has backed the RBZ proposition saying the gesture shows government’s commitment to buttress the use of the multiple-currency system.
The bank also noted that the United Nations exchange rate in 2008 was at Z$35 quadrillion for $1.
It said the local currency denominated money supply (M3) at the time was equivalent to $6 million while foreign currency deposits were estimated at about $300 million.
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