Bond notes not solution: MDC

HARARE - The opposition MDC led by Morgan Tsvangirai says the introduction of bond notes is not the solution to the crisis bedevilling the country and its national executive will tomorrow meet to come up with a way forward.

In a statement, Tsvangirai’s spokesperson Luke Tamborinyoka said the issue of the economy was a result of the political crisis that was borne from the disputed 2013 elections.

“There is no confidence in both the economy and in the banks, largely stemming from policy discord and the crisis of legitimacy arising out of the stolen election of 2013,” Tamborinyoka said.

“Unfortunately for Zanu PF, the printing of bond notes cannot be a panacea to what is essentially a political crisis that needs a political solution. This government cannot mask illegitimacy under the veil of bond notes that are essentially sanitised newsprint.

“Bond coins, bond notes all point to the cluelessness of what has become a “bond” government that is running the affairs of State.”

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya announced last week that Zimbabwe was going to introduce bond notes to complement the basket of multiple currencies that is currently in circulation in order to find solutions to the cash crisis that has hit Zimbabwe.

The bond notes will be backed by a new $200 million bond from the Egypt-based Afreximbank.

The announcement by the RBZ of the introduction of bond notes triggered panic cash withdrawals around the country — amid fears that Zimbabwe was relapsing to the 2007-8 era that was characterised by hyperinflation.

“Government’s decision to print the so-called bond notes, with a value of up to $20, signifies a return to the stressing national times nine years ago. Ordinary Zimbabweans lost their savings; pensioners lost their life-time savings while companies and other institutions were shortchanged as the economy tumbled until the MDC presence in an inclusive government brought stability and unprecedented economic annual growth figures, which peaked at 12 percent in 2012,” said Tamborinyoka.

According to Tamborinyoka the MDC’s shadow Cabinet that was chaired by Tsvangirai at his Highlands home resolved to “summon the party’s national executive on Thursday to enable the executive political organ of the party to sculpt a comprehensive political response to the economic madness”.

“It is the party’s executive political organ, the national executive that will craft the political response to this imminent danger that threatens to plunge the whole country into instant instability and chaos.”

Comments (4)

I have argued before that we can bring all the best economists from all over the world to work under Mugabe, it will all come to nought. zilch. The man is so thoroughly discredited as a person, much worse as a leader, that his mere presence attaches a scary and unsettling feeling, a sense of despair and hopelesness. Unfortunately, he is too proud and too scared to do the only reasonable thing, and that is to quit. His rudderless party is equally culpable. Has no value even as an opposition. Perhaps Bob can do us one more favour, disband and de-register the zanny party.I am certain only after his exit from politics are we able to move forward

mzilankatha - 12 May 2016

Ignorance is a seriouse threat to economic stability,especialy if interfered by ignorant policians pushed by ignorant suporters.even the English themselves r proving this idiocy correct by insisting on pulling out of EU ,bcoz of the love of the looks of the pound note.The US president ,their good friend,has even hinted that the pound will take a seriouse knock if they pull out.Still stuborn Britons think they go it alone.Zimbos must listern to economists nt politicians.

viola gwena - 12 May 2016

Mangudya is an economist,world bank is full of economists,IMF,Reserve bank, all these yu must lister to for the good of our economy,not politicians that are clueless.most of them are form 4s .Allow economists in mdc to argue their case for yu for or against bond note.mashakada shuld be talking more ,for yu against bond note.Put partisanship aside n talk facts on bond note.

viola gwena - 12 May 2016

Forgive me, I sometimes read headlines only. Yes they may mislead but in most cases they are a summary of the story. Going by the headline of this story I would say this to MDC: we have had enough of your critisim of Zanu-PF, now is the time for action because critisms alone will not shake Zanu-PF. Be real.

Masamba Akareyo - Tanganda - 12 May 2016

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