The Reserve Bank of Zimbabwe's plan to lop 10 zeros off the currency and issue new notes and coins quickly drew opposition Thursday from business, labor and opposition politicians who said redenominating the Zimbabwe dollar will not put a dent in hyperinflation.
The Zimbabwe Congress of Trade Unions put out a statement saying issuance of new money won’t resolve shortages of cash, as new coins will be rendered useless by “galloping inflation.” It was also critical of the central bank's move to allow cash withdrawals from banks of up to Z$2 trillion - the union had recommended it be increased to Z2.5 trillion dollars a day.
The opposition Movement for Democratic Change formation of Morgan Tsvangirai argued that “tinkering” with the currency will not solve the country's economic crisis unless agricultural and industrial production are revived. The MDC said agriculture and mining output have declined and that Zimbabwean exports continue to plummet.
The MDC said only a political solution can restore economic confidence - the Tsvangirai and Arthur Mutambara MDC formations are in power-sharing negotiations with the ruling ZANU-PF party of President Robert Mugabe aiming to form a national unity government.
Confederation of Zimbabwe Industries President Callisto Jokonya told reporter Patience Rusere of VOA's Studio 7 for Zimbabwe that Reserve Bank Governor Gideon Gono’s monetary policy statement on Wednesday was a non-event.