Bond notes: RBZ clarifies launch date

HARARE - Reserve Bank of Zimbabwe (RBZ) governor John Mangudya yesterday said bond notes were to begin circulating in October this year, following conflicting reports on the launch dates for the notes.

Mangudya said the apex bank needed about five months for the notes to be printed before they could be injected into the system.

“I do not know where the confusion is coming from with this August date talk. I said the notes needed at least five months to begin circulating, thus placing their possible introduction date sometime in October,” the central banker said.

Lickspittle State media had claimed on Sunday that the bond notes would be introduced in August.

Mangudya said the payment of the five percent bonus to exporters was necessary to sustain and safeguard the multi-currency system in Zimbabwe, with export vouchers to be disbursed to all exporters who have been exporting since May 5, 2016.

“We made the incentive announcement on May 4, so all exporters are accruing the incentive. The vouchers will be released dating back to all export transactions made from May 5,” he said.

Early this month, the under-fire governor announced the RBZ was set to print bond notes under a $200 million Afrexim Bank-backed bond, but the development was interpreted by some quarters as an attempt to sneak the discredited Zimbabwe dollar (ZW$) through the back door.

Zimbabwe — which abandoned its currency in 2009 and adopted nine currencies as legal tender in a multi-currency economy — still has fresh memories of the 2008 hyper-inflationary era where everyone in the country was a billionaire using the country’s worthless ZW$.

The proposed bond coins, to be printed in Germany, are set to make up a tiny fraction of the over $6 billion cash in circulation.

According to Mangudya, bond notes are not only earmarked as an incentive for exporters — the primary cash providers in the economy — but also to assist the common man with easy access to cash.

“The public should not confuse the export incentive or bonus scheme to be paid to exporters in the form of export vouchers called bond notes to assist exporters to generate more foreign exchange as a return to the local currency,” he said.

The bond note incentive set the nation into a panic frenzy with depositors rushing to withdraw their hard-earned monies from financial institutions — sparking fears of bank run-ins.

This comes as the Confederation of Zimbabwe Industries recently said Zimbabweans must embrace the proposed bond notes, saying they will boost internal trade and ease the cash crunch threatening Zimbabwe’s already lethargic economy.

Opposition leader Morgan Tsvangirai has called on Zimbabweans to reject the Zimbabwean version of the US dollar, warning that the country would “return again to the empty shops” of 2008.

In a short video clip posted to social media platforms recently, Tsvangirai said: “We have all walked that road before.”

Rejecting claims by the central bank governor that the new bank notes were merely meant to encourage exports, Tsvangirai said that President Robert Mugabe’s government would “abuse” civil servants by paying them in the new form of cash.

“All patriotic Zimbabweans must reject this,” Tsvangirai said. “These bond notes are an attempt to rig the economy.”

Former Finance minister Tendai Biti has warned that the bond notes will have cataleptic consequences to the remaining constructs of Zimbabwe’s pseudo economy.

“It is a decision that will see many of the remaining companies reach breaking point and simply shut down.

“Few are prepared to relive the nightmare of the meltdown period of 2007 and 2008.

“The move will also engineer a fresh wave of externalisation, under banking, tax avoidance and evasion,” the opposition PDP leader said.

Comments (25)

Bond notes or no bond notes,the truth is the fat cats are going to be even fatter because their thieving minds thrive on confusion in the economy which they caused in the first place.The hard hearted people who can bite off your heard and spit it at a passing train.The cuurent regime has caused untold suffering in a country where there is no war.Some war ravaged countries are surviving betterthan us.Looting continues for the thieves in the ruling party

MAMALDO - 1 June 2016

Conitnue changing goal posts Governor till nullyyyy,

tindo - 1 June 2016

good governor yu are being slow off the blocks,we want our bond notes now and we want them soonest

truth - 1 June 2016

@truth, ukapinda mushop mangu uchida kushandisa mabond notes iwawo ndichakuudza kuti futseki.

india - 1 June 2016

The Truth, Mr Truth is that the people who benefited from land reform (directly), the people who benefited from Gono s farm mechanisation programmes, the people who benefited from Baccossi, the people who benefit from the endless foreign trips ... these are the same people who will benefit from the bond notes. For the ordinary man it's not yet uhuru!

Zum - 1 June 2016

I heard that this so called DR Mangudya has a doctorate in whatever but it looks like he is a VERY POOR communicator. An important subject in any study. You were not misquoted STUPID governor uri dofo because you do not seem to understand your own strategy let alone communicating same to your peers and fellow country people. You think a simple inocent dude in Muzarabani or Kotwa or Binga will understand your BIG vocabulary this and that????? Idiot. One wonders where you got educated if at all you are!!!!!!!!!!!!!!!!!!!!

gamuchirayi - 1 June 2016

Zimbabwe needs to do away with corruption, work hard, revamp the local manufacturing sector, reduce unnecessary imports , increase exports, attract more FDIs, promote SMEs, promote consumption of locally produced goods, respect human rights, avoid intimidation and threatening those with divergent political views, love one another, chase away all ghost workers in public sector, privatise loss making parastatals, join the international community both East and West, acknowledge that Zimbabwe is beautiful and belongs to us all.

Viona Ngwena - 1 June 2016

You can go to town all you want, but the truth is Zimbabwe will never change for as long as Mugabe is still in power, full stop!

Billy Pule - 1 June 2016

VaMugabe woyeeee. Bhora mugedhe. Pasi nenharadada. Pasi nevatengesi.

ndonga - 2 June 2016

this governor does not have a solution to these economic woos! he does not have a clue either. he plays the tune of zanu & rhobhati instead of dancng to the style that yield economic progress. him & patreck are like mortuary wardens at the gates of a poorly refridgerated morgue where the the economy is rotting inside! panonetsa is no fit to be called a Dr. as non of his actions reflect credence that comes with that title.

SaManyika Chaiye - 2 June 2016

Hands up all those who worship RGM! Suggestion: let them be buried alive with him when he departs this earth.

Sagitarr - 2 June 2016

I second yu on that suggestion @Sagitarr! some lickspittle rectum chewers, boot lickers & diversionists on this platform who feeds on the rot of politiks of individuals rather than institutions have already volunteered to that act of hecatomb & oblation long back as a pledge of allegiance to their god. its going to be a classical burial to go into the annals of history afta Tshaka The Zulu and the fabled & so called hiroz eka will be banished into limbo! this will cleanse & detoxify the face of this land of its worst generation of pple and prepare for a new beginning.

SaManyika Chaiye - 2 June 2016

Mangudya is targeting year end so that when the people are busy receiving their remittances from relatives abroad they cash in and finance the festive of ZANU PF congress again which usually comes year end. He also want to make use of the festive mood to have cash awash and then the coming year have enough inflation. Resign Mangudya, you have started by failing.

amina - 2 June 2016

i second you samanyika. anwys its high tym we get rid of these old madhalas who are disconnected from reality and pave in a new era of young and fresh mind with modern ways of running the country.

lobb - 2 June 2016

if ever there is someone lying in Zimbabwe its Mugabe and him alone. stop blaming people who are the CEO of the country.

Nothing but the holy truth - 2 June 2016

One thing that i so not understand up to now is the attitude of our leadership. The voice of the masses have spoken against the bond note asi havanzwe. Small cannot help but wonder which planet these crooks came from. We said no to bond notes and you simply cannot accept that? Tsvakai another alternative way to address the cash crisis ana Mandudya. Make the industry work. The attitude yekuita blame the West for the sanctions haishande guys. $15 billion went missing and i don't see any Western hand that contributed to the missing money. WE ARE NOT GOING TO ACCEPT THE BOND NOTE COME WHAT MAY!! The bond note is like food poisoned with arsenic. Zviri nani kuziya nenzara uchidya hako hwiza than to eat a pizza laced with poison!

Tawanda Muchirahondo - 3 June 2016

We need to cut on unecessary travel expenditure. Mugabe flies almost daily and his travels are NOT BRINGING ANY SOLUTION TO ALL THESE PROBLEMS. They are actually worsening the problems by the day. Another thing that also needs to be well established is succession. All leaders have successors but some think they are immortal and dare not to discuss this subject. We are heading towards a dead end with the current crop of leaders who are very well divorced with the current happenings in the country.

Albert Yang - 3 June 2016

Please bring the bond not fast and we protect our money from externalisation by agents of regime change. A very good move. The idiotic TSVANGIRAI does not even know how the economy performs, and that is why he called for sanctions thinking it was going to affect ZANU PF supporters only., but now nemachinja arikungwaidza worse.

anti smuggler - 3 June 2016

Please bring the bond not fast and we protect our money from externalisation by agents of regime change. A very good move. The idiotic TSVANGIRAI does not even know how the economy performs, and that is why he called for sanctions thinking it was going to affect ZANU PF supporters only., but now nemachinja arikungwaidza worse.

anti smuggler - 3 June 2016

Zanu pf government must fix the economy or the economy will fix zanu pf.

X-MAN IV - 3 June 2016

mangundya hauna zvaunoziwa nezve economy. you are just using the same book that Gono was using all along and you are expecting a different result.... shame on you. DAKO raako

LOBB - 4 June 2016

The bondnotes will never see the light of the day

OneMita - 6 June 2016

What do we expect from this Gono crony waakasiira basa kuCBZ ndokumusiira basa kuRBZ again. These bankers are not economists, they are just glorified bursars who know how to receive and account for cash not to create money.

Sir Weak Nail - 7 June 2016

The state is looking for a way to print the ZIM DOLLAR, period. They can easily address cash shortages by compelling all businesses to accept electronic transfers rather than print BOND notes. Where where the authorities when the Indians were stocking cash in their homes and foreigners looting cash through our borders. Lets address the CAUSE not the SYMPTOM. The export facility they are talking about is a farce because $200m*100/5 gives $4bn. So with exports of nearly 4bn it will be used up. The argument of incentivising exports doesnt hold water...

BONDZIM - 7 June 2016

mugabe and his yteam must go

MK - 8 July 2016

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.