Banks to use discretion on bond notes withdrawals

Reserve Bank of Zimbabwe (RBZ) says banks should use their discretion and the availability of cash in dispensing the soon to be introduced bond notes to depositors.

Source: Banks to use discretion on bond notes withdrawals – NewsDay Zimbabwe July 15, 2016

BY TATIRA ZWINOIRA

Speaking at the Shipping and Forwarding Agents’ Association of Zimbabwe’s (SFAAZ) annual conference yesterday in Harare, RBZ official Simon Nyarota said bond notes will be introduced on a gradual basis.

“The bond notes will be issued at par with the US dollar in the same manner that the bond coins have been operating. For example, let us say an exporter receives the 5% export incentive, when they are withdrawing say $100, $80 will in dollars while $20 will be bond notes,” he said.

“Bond notes will be released into the market on gradual basis in line with the level of exports. It is, an export driven scheme, implying that every bond note injected into the economy is evidence of exports within the economy.”

RBZ wants to introduce the bond notes under a $200 million export incentive facility guaranteed by the African Export-Import Bank, as part of measures to stem cash leakages and boost exports.

Under the facility, exporters will get a 5% incentive in bond notes.

Nyarota said an independent body will be introduced to provide checks and balances, as Afreximbank will not allow the entire $200 million facility to go to bond notes at once.

Any exporter, who has made an export transaction, will receive a 5% incentive based on exports receipts, which will be debited to their account, meant to hold export proceeds in a bank. When a depositor comes to make a withdrawal, the bank will issue to the client the bond notes that it has in its coffers alongside the dollar.

RBZ says the bond notes will be introduced in October despite resistance from depositors, who see the move as a ploy to return the Zimbabwean dollar. The local unit was retired last year to give confidence to the multi-currency regime introduced in 2009.

Bankers, business executives and economists have also disapproved the introduction of the bond notes.

Currently, the central bank is importing about $20 million per month in fresh cash and is expected to import unspecified amounts of the rand and euro to deal with the bank queues.

Nyarota said the bond notes will serve to address the lack of export competitiveness due to the US dollar appreciating against the country’s trading partners’ currencies, as well as “preserve the facility from capital flight and externalisation of foreign exchange”.
Last year, externalisation of funds cost the economy $1,8 billion.

COMMENTS

WORDPRESS: 8
  • comment-avatar

    The bond notes are supposed to be an incentive to do exports- seems to me these poor people who are doing exports are going to get a kick in the crotch for doing so.
    By all accounts when we withdraw money we will get a percentage in very shiny toilet paper , what happens if we don’t want this special money, can we ask the bank – don’t worry I’m very very happy without your special bond notes ?

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    Godobori renyika 6 years ago

    That’s make nosense ,most of the the money coming 8n Zimbabwe comes from people from diaspora which Chombo or chimboko was insulting. So who is going to accept the bond notes from the so called exporters. Very soon there’s is going to coup.You pay yo soldiers with your bond notes and the vendors won’t accept them

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    tonyme 6 years ago

    Externalisation is result of greed and poor monitoring of financial transaction. By the way, corruption at the highest levels. Look at the A G’s reports and see how much has been lost from the country. The Chinese and their lack of transparency etc. The government killed the economy. These bonds are a further indication of a dying horse. Remember sanctions were only against a few people and not on the nation.t.At one time there were sanctions and a war against Ian Smith ,but we had food, jobs and a life. Safety wise it was tough but the Boers had it together somehow. Our problem is fraud and lack of transparency. Chinese people must go.

  • comment-avatar

    Please Mr Mugabe keep your bond notes we shall keep our foreign currency. I myself I don’t want them and I have nothing to do with them. You may pay your partners in crime. Thank you.

  • comment-avatar

    What was the rate when we ditched the Zim dollar??? We Will start from there with the new Zim dollar…… GOOD LUCK!!!!!!!!

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    George the Gaffer 6 years ago

    If exporters paid part in Bonds this works to depreciate their available forex for new raw materials to manufacture. Eventually they stop exporting?

  • comment-avatar
    Burner 6 years ago

    Thank you so much I am so excited. I am back in business. Burning is here.

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    zwely 6 years ago

    Yoooh mr Robert you faild man give others a chance cause you are trying to collect our US Dollers by chance uhambekabi guluvandini uzoyithola la owayifunda khona shona e china ubatshele nge bond hayi thina