Conjuring up the specter of Mugabe’s Zimbabwe and Mobutu’s Zaire –

2023-06-16 14:33:05

Disoriented, some depositors such as merchants and other commission agents of businessmen say they remember the threat of the Chief Executive. He had warned that these big cuts today “shames to get rid of”, could become mere “paperwork.” »

The clear, direct threat was specifically addressed to the “big hoarders” whom President Evariste Ndayishimiye seems to know. Except that today the measure affects any holder of these famous tickets.
A decision that has collateral victims: from the old lady of Kinyinya, to the shopkeeper of Ruzo, through traders and other businessmen accustomed to Guangzhou and other Dubai.

An old-school economist approached to find out the reasons that push a State to change banknotes gives a little reminder. According to him, history gives some examples of currency changes in times of out-of-control inflation. This has already happened in Mugabe’s Zimbabwe and Mobutu’s Zaire. This is not the case for Burundi, he points out.
But our source points out that in the past, there have been currency changes to avoid money grabbing by illegitimate institutions. She recalls the change of currency in Rwanda to hit the “genocidal forces” who had fled with the coffers of the central bank!

But what about Burundi? “In Burundi, this is part of the political fight to recover all the levers of power, some of which seem to be out of control”, explains the banker.

“Some have a head start on formal monitoring”

The banker nuances. Measurement has its limits. First, it is not impossible that the holders of large amounts had the time to “dispatch” them between relatives and friends to deposit them in several accounts.
Pire, “it is very likely that the big hoarders could have already laundered these sums in irreproachable economic activities. This is often the case all over the world”.

Another economist interviewed is more pessimistic. For him, “parallel reflexes are often a step ahead of formal surveillance”.

According to him, the measure could do a lot of harm to people who are not particularly guilty. “You have to keep in mind that in general we don’t have a banking culture. There are many merchants who make an honest living and are not used to frequenting banks. What must we do ? Ruin them? »he wonders?

All bankers recognize that the objective of the measure must go beyond the fight against hoarding. “We must prevent people from keeping large sums of money at home in the future”.

All advise the BRB to digitize and develop payment systems. It is also necessary to have appropriate legislation and regulation and to proceed with education in the means of electronic payment. And to wink: “Kenya and Rwanda are good examples, it’s not far away, we must take inspiration from them. There are already some initiatives in this direction in Burundi”.

But, in the meantime, many citizens who have done nothing reprehensible are going through the ordeal to get rid of these tickets with hours spent in queues…

Neva decided to fight it out

“The economic fight is a fierce fight and we must emerge victorious, I swear to you. You know very well that I am a fighter, if you do not help me in this fight, I will not hesitate to take up arms and go it alone, I will report to you when I am finished”, committed the Head of State.

“I am determined in this fight and I do not intend to share my secret with you. There is no other solution, we are at war and we have to stand up against people who are determined to keep the country in poverty. Imagine people withdrawing all the money from the BRB, taking it to hoard it afterwards, it’s another form of war”said President Evariste Ndayishimiye, upset against the hoarders.

Par Abbas Mbazumutima (Our Country)