Bond notes launch on track: RBZ

HARARE - The Reserve Bank of Zimbabwe (RBZ) said it is “well on track” to unveil the bond notes in October, despite public resistance.

Last week, central bank deputy governor Kupukile Mlambo told the Daily News that despite the public’s concerns, the RBZ was geared to introduce the notes.

“October is still the introduction date… the process is not just printing, it also involves design, so we are well on track,” he said.

He, however, declined to indicate the current stage of the notes’ production.

“I cannot comment on that, the only person who can give you that information is the governor himself,” Mlambo said.

However, RBZ sources yesterday said the bank had received several designs, with the final templates expected to be submitted to the German printers by mid-August.

“As you may already know, the introduction date is October. As of now, designs have been received and they will be delivered to the printer by mid-month,” the source said.

The notes — which will serve as a five percent bonus incentive to exporters — will be introduced to sustain and safeguard the multi-currency system in Zimbabwe, amid public confusion over how the system will function after their introduction.

Vouchers for exporters to redeem the bond notes will soon be disbursed to all exporters who have been exporting since May 5 2016.

According to RBZ governor, John Mangudya, all exporters have been accruing the incentive since May 4 when the bond notes announcement was made.

The vouchers will be released dating back to all export transactions made from May 5.

In May, the governor announced that the RBZ was set to print bond notes under a $200 million Africa Export Import Bank-backed bond, but the development was interpreted by some quarters as an attempt to sneak the discredited Zimbabwe dollar through the back door.

Zimbabwe — which abandoned its currency in 2009 and adopted nine foreign currencies as legal tender — still has fresh memories of the 2008 hyper-inflationary era.

The proposed bond notes are set to make up four percent of the over $6 billion cash in circulation.

When the announcement was made, Zimbabweans — still traumatised by the inflationary effects of the bearer cheques — panicked, with depositors rushing to withdraw their cash from banks.

Market analysts say government needs to deal with issues of trust and honesty before introducing a currency of any sort.

Comments (8)

THEY WANT TO FORCE US TO USE THEM, WE WILL JUST REJECT THEM PERIOD. WE WILL NOT TAKE BOND PAPER NO NO NO NO NO NO NO NO NO NO NO TARAMBA. MUNHU WESE RIDZA BOSVO. NO TO POVERTY BROUGHT BY BOND PAPER.

HATIDI MA BOND PAPER - 3 August 2016

Some of us had sold their cattle in 2008 before the 12 zeros were cut off and become poor beggers instantly. I was left with bags of useless bearer cheques and this govt never compensated us. I kept them until 2012 hoping this govt would one day call for their bearer cheques and give me real money, alas that was not to happen and i had to burn them all while crying for my cows that had gone for nothing. I had spent many years hearding these cows in the sun, in rain, in the cold but i reaped zero. Now they tell me they want to buy cows again which i have sweeted for from zero with bond papers, this time around, it wont happen. Anyone who comes with bond papers halume, will never buy my cow - forget it.!!!!!!

POORMAN - 3 August 2016

Pay ll your staff and yourself Vice Presidents , Ministers their deputies Members of Parlement Senate ; senior civil servants with bond notes but us as povo do not want it. What is it that you do not understand We are tired of being ordered by people non elected or elected for that matter. You stuffed up and we have to rectify your stuff ups. So far and no further I regret. Listen to people who know economics and not those who run tuckshops like management at Reserve Bank or Hon Ministers of Education who is a know all.

Fooled - 3 August 2016

My pay ( according to contract ) is dominated as US $. I will therefor refuse payout in bond notes.Wemust all refuse bond notes. Only then will Govt come to its senses.

Fooled - 3 August 2016

Taking us down memory-lane. 2008 PFACHAAAA. Tichakaura.

Captain D - 3 August 2016

I smell a big fat rotten rat here. The Government's wage bill is pegged at around 200 million dollars. The value of Bond notes is 200 million dollars, yet money in circulation is around 6 billion dollars. The Government is failing to meet this wage bill. My calculations serving me right as they do point to the Government just aiming to be able to able to pay the bloated Civil Servants' wage bill which has in it a proportional number of 'ghost workers'.

Dr. Know - 3 August 2016

They are simply trying to buy some more precious time until 2018 with this bond note con. #tajamuka #hatichatya #thisflag

Martingee - 6 August 2016

No to fiat or fake currency... The gvt has run out of ideas!? A drowning man can clutch at anything....even straw, floating leaves,etc

Dhewa - 14 August 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.