Citizens Coalition for Change makes case for independent central bank

HARARE – The Citizens Coalition for Change (CCC) on Thursday called for an independent central bank as it set out its policy programme for “correcting the wrongs of Zanu PF.”

The CCC made the statement in response to a controversial bank lending ban announced by President Emmerson Mnangagwa last weekend which has sparked turmoil with banks warning their survival is not assured.

“The CCC will amend banking legislation to establish an independent central bank, with a governor, a single deputy governor and a strong monetary policy committee,” CCC spokesperson Fadzayi Mahere said in her party’s alternative policy document.

“We will ensure that the central bank sticks to its core function of monetary policy as well as the management of the national payments system. The CCC will enact legislation that prevents central government from borrowing from the central bank and put an end to murky debt assumption by the citizens.”

Mahere said a CCC government would restore a savings culture in the country.

“In this regard, we will implement measures to promote financial inclusion including for the rural economy, establish a credible Credit Reference Bureau, restore the operation of savings accounts, and promote savings instruments including paid up permanent shares and other savings paper to ensure that savings are at least 25 percent of the national GDP, monitor fee charges and lending rate to avoid arbitrage and usurious rates, restore mortgage finance facilities, return consumer lending and credit finance,” she said.

On fiscal reforms, Mahere said a CCC government would also cut government expenditure and trim the civil service.

“A CCC government will reintroduce balanced budgeting to limit the exposure of government to the central bank, rationalise the public service, suspend all costly quasi-fiscal activities, rationalise government expenditure, build capacity on budget management, expand the revenue base through measures to improve productivity and introduce a citizen portal for feedback on public services,” the CCC proposes.

The CCC government, Mahere said, would also scrap the local currency and return to a multi-currency regime and grow the GDP in order to build substantive reserves for Zimbabwe.

“We will also ring-fence USD bank balances to protect depositors against any further shocks,” she said.

Mahere said CCC would also introduce policies and incentives to attract international capital in key areas like technology, manufacturing, agro processing and mineral beneficiation.

Enjoyed this post? Share it!