Bill to legalise bond notes set for Parly

HARARE - President Robert Mugabe has moved to seek Parliament’s approval of a disputed statutory instrument to legalise bond notes.

The development comes after the Zanu PF leader had invoked his executive powers to introduce emergency measures to shore up the surrogate currency, which will trade at par with the American dollar, in a bid to ease a worsening liquidity crunch that has heightened panic in the country.

In an extraordinary government gazette last week, Mugabe’s government sought to amend the Reserve Bank of Zimbabwe (RBZ) Act through a bill that will be tabled in the national assembly — in accordance with the august House’s standing orders — and scrutinised by its legal committee as well.

Lawyer and MDC chief whip Innocent Gonese yesterday told the Daily News on Sunday that the the intended piece of legislation would also be discussed by the finance committee, possibly taken through a public consultative process and after which Finance minister Patrick Chinamasa would bring it back to Parliament for a second reading.

“The PLC will (try)... to see if it does not violate some provisions of the country’s constitution and if a non-adverse report is produced, then it will go ahead,” he said.

The envisaged process follows Mugabe’s publication or issuance of statutory instrument 133 for the legal tender to trade along nine other currencies.

As the contestation around the bond notes continues, lawyers Tererai Mafukidze, Tendai Biti and Dzimbabwe Chimbga have mounted a legal challenge against the Central Bank initiative and describing it as a “troubling, bad and terrible economic” gimmick meant to pave way for the return of the Zimdollar.

However, RBZ governor John Mangudya has continued drumming up support for the currency and insists the “money” does not signal the return of the derided currency.

The new notes, it has been announced, are backed by a $200 million facility from the African Export-Import Bank (Afreximbank) of which Zimbabwe is a shareholder.

Mugabe and his Zanu PF have pushed for the law, in part to try to circumvent a biting liquidity crunch, as banks have run out of greenbacks and resulting in further cuts of amounts dispensed to customers.

Comments (4)

I am really surprised that a reserve bank governor can resort to printing paper just like that, from nowhere and value that paper the same as the US$, a universal currency kkkkkkk ah this is terrible. I can only conclude that mangudya is the biggest moron ever or it's by design to steal all the US$ in zim. I say so because this is exactly what happened in 2007/8 with the bearer cheques so I say mangudya must be so so idiotic to not realise that this will get zim in big big trouble, AGAIN. We are led by idiots, from mugabe himself he is the biggest one, how can he allow this to happen. IDIOTS!! Do you know what money is? How can you borrow money to print bond notes? That's really moronic.

misty - 20 November 2016

they want to take the real money and give us the printed paper. this time mairasa, fools have opened their eyes now. even chembere iri kwa chivi iko inotoziva kuti 2008 yakasara yabata mapepa oga. MATSOTSI HAAGERANE GORE RINO!

observer - 20 November 2016

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KANGAUSAVI - 21 November 2016

Why would Zimbabwe run out of currency. What that means is that the services and products that Zimbabwe is offering are not generating foreign currency. That means the services and products that RGM government is generating is bond notes. A currency or paper.

amina - 21 November 2016

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