Despite all but admitting that excessive money supply was to blame for hyperinflation and the wanton price increases we are seeing, the RBZ is still freezing corporate accounts of alleged cash and black market barons.
In a turn of events that can only be described as shocking and concerning the RBZ governor said that the central bank had determined that the funds in these corporate accounts were not ill-gotten i.e. these were legitimate idle funds held by these corporates.
He, however, accused these corporates of sabotaging the local Zimbabwean currency via speculative behaviour. In all this, he conveniently omits to mention that this country’s money supply grew by 80% within a space of a year even as productivity has continued to decrease.
The frozen accounts belong to the following companies:
- Access Finance,
- Spartan Security,
- Croco Motors and affiliated entities as well as others
Together these companies hold about $17 billion of the country’s funds in their accounts, the governor said. How these companies came to legitimately have so much money in their accounts is an odd mystery but not the point of this article.
The RBZ is looting these accounts?
The governor went on to say that these funds were going to be invested in productive sectors. What is very concerning is that he doesn’t say who is going to be doing the investing, these companies or the RBZ on behalf of these companies.
It doesn’t matter either way- both courses of action involve these companies being held hostage and coerced to invest in what the central bank deems productive. This reminds me of the God Father when he makes an offer one of his victims cannot refuse.
So the RBZ is looting people’s accounts now. That hardly inspires confidence. If the funds are legitimate businesses should be free to invest them in ways they see fit- so long as the investment is legal of course.