Mthuli Ncube admits government printed fake US Dollars

Mthuli Ncube

Over two months ago, Finance Minister Mthuli Ncube was taken to court by a pensioner over his Directive which converted depositor’s US dollars to a currency called RTGS.

In response to that matter, Mthuli Ncube has revealed that the government had created US dollars out of thin air without the public or parliament’s knowledge and consent. The fake US were in the form of electronic money and they were meant to settle debts owed by state-owned enterprises. In the affidavit, the Finance Minister said:

The currency reforms which Government is and has been pursuing in order to stabilise the economy, include, the adoption of a domestic currency amongst other key reforms.

It was in pursuance of this issue of currency reform that I recognised that the currency we were commonly using as at October 2018 was both in dollars of the United States of America and currency which had been created by the State through borrowing from the Central Bank and issuance of treasury bills to cover the indebtedness of State-owned entities to local institutions.

It was therefore essential to separate the two currencies which were both being transacted as dollars of the United States Dollars of America.

In the same affidavit, Mthuli Ncube further reinforces the point by saying that “the banking sector was directed to separate customer accounts holding actual dollars of the United States Dollars of America from accounts holding created money which was not currency of the United States Dollars of America”.

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