Mangudya appeals to MPs to assist in disseminating information about bond coins

via Mangudya appeals to MPs to assist in disseminating information about bond coins – NewsDay Zimbabwe February 4, 2015 by Veneranda Langa

RESERVE Bank governor John Mangudya has appealed to MPs to assist the central bank disseminate information about bond coins which are being rejected by many Zimbabweans.

Mangudya appeared before the Parliamentary Portfolio Committee on Budget, Finance and Economic Development chaired by Mutoko South MP David Chapfika on Monday.

He revealed that acceptance of small denominations (bond coins) by the Zimbabwean public was pivotal in spearheading economic revival, survival of many businesses as well as reduction of prices.

Since the introduction of bond coins many Zimbabweans, even commuter omnibus operators, have been reluctant to accept them, causing people to continue to round up prices of products resulting in items becoming expensive.

“There is no country in the world without coins (small denominations) because there are there to address competitiveness of the economy as businesses are rounding up prices and selling goods unnecessarily for a dollar for two because of lack of change,” Mangudya said.

“I will not stop talking of the issue of decreasing prices, and I will be consistent and add that there is a drought and deficiency of knowledge for people to understand this economy – and we shall continue to talk until people understand the importance of coins in this economy.”

The RBZ governor said coins were helping run economies even in developed countries like America and so Zimbabweans could not continue to turn their backs on them.

“One of the major challenges in this country is that we are in a war of perceptions causing lack of confidence which makes people to live in despondency and despair,” he said.

Finance minister Patrick Chinamasa told the committee that bond coins were bankable and had the equivalence of the United States dollar and people should not be scared to take them.

Meanwhile, the RBZ was quizzed on whether the people who benefited from the farm implement scheme and got tractors, generators and other equipment had since got letters informing them of how much they were supposed to pay for them.

MDC Proportional Representation MP Priscilla Misihairabwi-Mushonga said: “Most of the equipment was offered to politicians and MPs, and it was not clear if these people were supposed to pay. Has there been an attempt to write to those people informing them of how much they owed the RBZ?”

MDC-T chief whip Thokozani Khupe also revealed before the committee that she was offered the equipment but refused to take it.

Mangudya promised that the issue would be looked at.