Source: Mugabe says “surrogate currency” will prevent dollar outflow – The Zimbabwe Independent June 9, 2016
PRESIDENT Robert Mugabe said on Thursday the introduction of local bank notes by the central bank later this year, which he called a “surrogate currency”, would help prevent foreigners taking greenbacks out of the country.
He also said the shortage of U.S. dollars in the economy would be overcome soon, although he did not elaborate.
In the grip of its worst drought in a quarter century that has left four million people facing food shortages, the southern African nation is also running out of cash, forcing the central bank to impose limits on imports and withdrawals from banks.
But Zimbabweans are worried that the central bank’s plan to introduce banknotes, or “bond notes”, in October to ease the dollar shortage could open the door to rampant money printing, as happened in 2008 when inflation hit 500 billion percent, wiping out people’s savings and pensions.
Since January 2009 the country has used foreign currencies including the U.S. dollar, British pound and Chinese yuan after dumping its own currency that had come to symbolise a decade of economic collapse.
Mugabe said the introduction of bond notes would discourage criminals from coming to Zimbabwe to “fish” for dollars.
“They will have to deal with bond notes as a surrogate currency, surrogate to the U.S. dollar that we hold in our reserves,” he told a meeting of his ruling ZANU-PF party.
The 92-year-old leader said the U.S. dollar had become too attractive for neighbouring countries who are increasing their exports to Zimbabwe following the collapse of their own currencies due to a fall in commodity prices and a strengthening of the greenback.
Mugabe, however, said only increasing Zimbabwe’s exports would bring about a long-term solution to the country’s economic problems.
He said the current shortage of dollars would not last long.
“Cash shortages are being felt across the board by our people, who cannot easily access their savings and earnings,” Mugabe said. “This is a temporary problem whih should be behind us soon, sooner rather than later.”-Reuters
COMMENTS
This is the second time in about ten years Zimbabwe has contemplated using bank notes. Regardless of other circumstances ,it is the lack of internal controls that has brought this to h nation to its knees. Disregard for national and international laws has thrust Zimbabwe into a hell of fire.. Common Joe on the street takes no money out. Common Joe does not even own a back account.The big shots have been siphoning millions at a time. A president whose life is spent more on planes and in foreign lands has very little to show for in his own country. What should we expect from him. Misery, starvation are the order of the day and there seems to be no end in sight. These notes will not help as long as corruption is not addressed straight from the top.
Criminals fishing for dollars in Zimbabwe are not the main problem. On the other hand you cannot say the same about Uncle Robert
“Cash shortages are being felt across the board by our people, who cannot easily access their savings and earnings,” Notice the distinction between the people and the chefs!!! Try tanslating the sentence into vernacular and you will appreciate how dire our situation is.
It might be more accurate to say that neighbouring counties are increasing their exports to Zimbabwe because we are no longer capable of producing anything for ourselves, and not because ‘their own currencies are collapsing’ (he apparently fondly remembers what he did to the Zim dollar).
But how do these criminals get the US Dollar in Zimbabwe to take overseas? They have to deposit a US Dollar first! So what are they stealing?
I worry that the govt is actually the one taking the US dollars secretly, and so the depositor will not be able to withdraw their own US Dollar.
Tell the chefs to bring their own personal savings (which belongs to the country anyway) to repatriate those funds first and foremost.
Mugabe is the Zimbabwean with most syphoned off money in foreign bank accounts in the Far East Banks. Every time he travels another $6 million vanishes from Zimbabwe – of that amount he takes at least 60% for his personal benefit. He calls others criminals – but he sets the criminal example copied by his cronies.
That is why nothing will come from any looting investigation in Zimbabwe – they cannot investigate the chief looter and the others protected by him. A Mafia government – who is a curse on the people of Zimbabwe.
Zimbabwe, it’s time. Time to stand up against this confused, mentally-challenged geriatric, Mugabe. None of us are proud to live here any more thanks to him. Rather than us wait for him to die, let’s help speed it up. At least we will have a bit of justice for all this misery. And he will go down in history as the disgraced leader that he is.
To be quite honest what does Robert Mugabe know about economics when he does not even know how to use a computer ?
Then how did he get a masters in economics .
All valid comments. Certainly, we can not expect the chef thief to investigate himself or any of his cronies for their thefts over the past 35 years. They have gone about striping the country of its wealth and assets, and continue it with impuginity, with no regard for anything other than their own welfare, and with a complete blind-eye to their responsibility as leaders of a nation.
It’s all quite frustrating for the observers, especially when the majority of the nation are unwilling to hold their leaders accountable. The voice of the leadership again and again offers flimsy excuses and denials, which are supported by the majority, fanatical, tribalist Shona with vitriol rhetoric.
Unfortunately, armed support for the leadership is provided by the JOC, who themselves quickly joined in looting the country… and when the judiciary is politicized, and the military and policia the only ones allowed weapons, this is what ya get.
You see, it wasn’t a revolution at all… it was a bank heist in disguise, and those mindless minion who supported it lost what they had. Beside no cash, they are without hope for a future.
The man is a genius – telling people what to do so that he steal their money….again.
We hear bob is now complaining that his chines friends are looting all the US Dollars. But Chinese have looted in Zambia over years and that has always been common knowledge. It the combination of ZANU thieves and the chines that has caused the shortage of cash in our banks. Although it is too late now, for once bob is right to identify the Chinese as part of our problem. However, he is wrong to exclude himself and his zanu friends for china masa is a thief too…..
For every trip abroad the Reserve Bank has to provide Mugabe with US$ 4 million in cash Next time give it to him in surrogate currency and let him try to spend it or put it into his account abroad.
The new bond or surrogate currency as Robert Mugabe calls it ( it really is the 6th issue of the New Zimbabwe dollar) is really only meant to stop the “Little” people moving US$ out of the country.
Ask yourselves – who has access to the real US dollars – all the bankers and the politicians of course !?
Why do they care about you – the little man in the street and the people standing all day in the queue ?
They don’t care about you at all – Comrades the race is on – don’t be left with money in a Zimbabwe bank – ensure the US$ that are yours are in your very own pocket or under the bed – yours prefearably
Who are these “foreigners” Mr President? We all know who’s stealing the country blind.