Embattled Reserve Bank of Zimbabwe governor Gideon Gono reportedly confided to close associates that he will immediately step down in two months if talks between ZANU PF and the MDC break down, a source close to Gono who is also a ZANU PF central committee member revealed.

Gono reportedly said there is no way he can turn around the economy unless there is a political settlement. His bargaining chip when he agreed to help Mugabe in the run-off was that after Mugabe’s victory the MDC must be co-opted into government.

Gono was reportedly frustrated and felt powerless after substantial foreign currency reserves in Germany were suddenly frozen and a fully paid consignment of new currency was confiscated by the German government. The total costs of the seized consignment excluding shipping are estimated to be
over US14 million dollars.

But there are real threats to the dialogue and it might collapse despite public pronouncements to the contrary.

ZANU PF has already rejected any substantive position for Tsvangirai.

“We will not accept anything other than that President Mugabe remains the executive president as he won the presidential run-off on June 27.

Tsvangirai must be content with the third post of vice-president.

“The Zanu-PF politburo has resolved that while the party is committed to the talks, the issue of president is non-negotiable and we will reiterate the issue when we resume talks.” one of the negotiators was quoted saying.

Efforts to reach Gono’s spokesman Kumbirai Nhongo were unsuccessful.