IMF engaging Zim on bond notes

HARARE - The International Monetary Fund (IMF) says it is engaging the Zimbabwe government on its highly controversial plan to introduce bond notes.

According to a press briefing by William Murray, the Bretton Woods institution’s deputy spokesperson, the IMF’s executive board had concluded — after its Article IV consultations in early May — that the economy was severely constrained by tight liquidity conditions as a result of limited external inflows and lower commodity prices, hence the much-criticized initiative could bring a bit of relief.

“...we are in discussions all the time with Zimbabwe. We will follow up and, actually, if we get something fresh . . . we will let everybody here know or put it in the transcript,” he said in response to concerns that President Robert Mugabe’s administration could be “tempted to print dollar bonds and return to it’s derided currency”, which might result in eye-popping inflation that was previously seen in 2008.

Seven years after ditching its currency, the Harare administration plans to introduce “bond notes” in October — described as an effective new currency — to stem a deepening cash shortage.

A scarcity of US dollars, which is the most widely used currency in a basket of currencies in the southern African nation, has led to bank ATMs running out of cash, triggering long queues at banks and exacerbating a sense of economic crisis.

To counter the problem, Reserve Bank of Zimbabwe governor John Mangudya has announced a range of measures, including the bond notes initiative and incentive to exporters, which he also says is aimed at helping the ordinary Zimbabwean.

Comments (7)

If Mugabe doesn't want an election before 2018, he should choose his successor now. He can choose his wife if he does not trust anyone else in ZanuPF. We don't want to be subjected to some bitter alien policies and situations. We the poverty -stricken masses of Zimbabwe have suffered enough. This ZanuPF arrogance MUST COME TO AN END ,we are not all biological offspring of ZanuPF officials.

Jonathiel Moyowaonda - 4 June 2016

to hell with yu @jonathiel moyowaonda,elections are due in 2018 as per the constitution,we in the revolutionary party will not be dictated to yu as to whom and when we should choose our leaders

truth - 4 June 2016

There is need to make policies that attract investors to boost exports. Otherwise we will continue to implement failed policies.

Tendai Murindagomo - 4 June 2016

@truth,there is no need to emotional, it clearly shows your 'housefly' poor judgement. How do you explain yourself attendance of the so called 'one million man march' where you celebrated shutting down of industry and collapse of the economy? Today some of your colleagues are saying there shall be bloodshed if Mugabe ignores Mnangagwa, these are the people to which you can vent your anger. If you have nothing to say you better keep quiet. Zimbabwe does not belong to you @truth, ZanuPF or Mugabe. Your party cannot hold the whole nation at ransom because we are not your people. We are the same in the eyes of God. Those who worship the devil see differences in humans. So if you have nothing to comment on the predicament in which you and Mugabe have thrown us just keep quiet. Speaking on a subject you have no knowledge on exposes your educational inadequancy and mentality decadency.

Jonathiel Moyowaonda - 4 June 2016

@truth is one of the idiot zealots and bootlickers of Mugabe. If there are people who should go to hell are ZanuPF zealots like you @truth. We do not need you here. @Jonathiel please sisonke.

Gandanga - 4 June 2016

I wonder what these "finance" people from the so-called revolutionary party will say to IMF officials in defence of stupid unworkable policies. The writer using the moniker truth is not your standard bootlicker, no. This one eats the boots and swallows them.

Kclab - 4 June 2016

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... - 9 June 2016

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