MPs want to bid for forex with CDF at the auction

MPs want to bid for forex with CDF at the auction

Legislators have asked if they can be allowed to convert their ZW$11 million Constituency Development Fund (CDF) into United States Dollars at the foreign currency auction system to preserve value.

The government allocated about ZW$2.4 billion towards the Constituency Development Fund in the 2022 national budget which would see each constituency getting about ZW$11 million.

However, due to the late disbursement of the funds, the legislators fear the money could be eroded by inflation such that it will not be enough to do what it was allocated for.

CDF is given to the 210 constituency legislators to stimulate development in their constituencies and was started during the time of the inclusive government.

Speaking in the National Assembly Makoni Central legislator David Tekeshe said the allocated amount was initially good but is no longer meaningful.

‘’Thank you, Honourable Speaker.  My point of national interest arises from CDF.  When the Budget Statement was announced, it was said that it will be ZW$11 million.  We thought it was good but looking at the current inflation rate, it is no longer meaningful at all.

‘’If we look for quotations, they quote us in US dollars, and it comes down to around US$15.000 or less. My request is may Parliament be allowed to go to the foreign currency auction system so that we can also bid to get forex.

In his response, the Speaker of the National Assembly Jacob Mudenda said it was very important.

‘’Can you raise that issue when the Honourable Minister of Finance and Economic Development presents his Ministerial Statement. It is a very important point, the question of devaluation,’’ he said.

Finance Minister Mthuli Ncube is expected to present a Ministerial Statement on the shocking exchange in the country that has seen the local currency trading with the US Dollar at ZW$400: US$1.

This situation has reportedly put pressure on the citizens most of whom are paid in local currency, while most goods are pegged in forex.

Various stakeholders have been pleading with the finance minister to dump the local currency and adopt the United States Dollar as the sole legal tender.

They argue that using both the local currency and the US dollar is causing unnecessary pricing disparities in the economy.

However, the government is on record that the local currency is here to stay.

MPs want to bid for forex with CDF at the auction