Mthuli Ncube Announces Foreign Currency Allocation Committee, Free Market Forces Will Have To Wait

The Minister of Finance, Prof Mthuli Ncube has announced his new foreign currency allocation committee. He promised that he would do this when he presented the 2019 budget proposal in November last year.

It looks like the minister has no trust in the laws of demand and supply. Of course demand and supply will not work when there is a fictional parity between money we hold in our accounts and the US dollar. Committees though make me shudder. They just remind one of the central planning committees of the Soviet Union.

Here’s the minister’s statement:

Reference is made to the 2019 National Budget Statement which I presented to the Parliament of Zimbabwe on 22 November 2018.

This Budget Statement contained a number of policy reform measures, with one of them being the proposal to set up a revised framework for the allocation of foreign currency.

More specifically, the Budget proposed to “establish a strong inclusive framework, through an Interim Foreign Currency Allocation Committee, with broader representation as was the case in the past

In line \vial this policy pronouncement, I am pleased to announce the appointment of the following Members to the Foreign Currency Allocation Committee:

Office of the President and Cabinet

1. Mr . A. Chikondo

Ministry of Finance and Economic Development
2. Mr. Z. R. Churu

3. Mr. D. Muchemwa

Ministry of Industry and Commerce

4. Mrs. F. Makornbe

Ministry of Energy and Power Development

5. Col. M Mudzinganyarna

Reserve Bank of Zimbabwe
6. Mr A. Saburi

7. Mr. F. Masendu

8. Mr. G. Mawire

9. Mr. E. Matiza

Besides the sticking issue that there is only one woman out of 9, the committee is composed of government bureaucrats alone. That’s usually not a good idea.