Source: Bond note printing will be monitored: RBZ boss – The Standard May 15, 2016
The printing of the bond notes under a $200 million export incentive facility will be monitored through an arrangement involving the buyer, supplier and financier, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has said.
BY VICTORIA MTOMBA
The African Export-Import Bank (Afreximbank) has provided a $200 million loan to back up the printing of bond notes that will be used to pay a 5% incentive to exporters.
“We have a tripartite arrangement of buyer, supplier and financier. The people who are printing the money know how much we are printing and against what are we printing.
“Exports come gradually. It’s a gradual process because exporters do not export every day,” Mangudya told Standardbusiness on Friday.
“We are not going to put money into the economy other than what has been requested by banks.
“When one exports, the bank which is handling the transaction will advise on the money that has been received and the exporters then get the 5%.”
Asked what happens to the other funds that will not be used to print the bond notes and whether RBZ would use the money to address the liquidity challenges, Mangudya said, “This is a standby overdraft facility so that we do not incur costs. We pay on what we withdraw.”
Mangudya said the bond notes would only be put in the economy as requested and not by any other means.
He said the sight of the bond notes would be a sign that money has been paid to exporters.
Afreximbank referred questions to RBZ when asked on the $200 million export incentive facility.
“Given that this issue touches on Zimbabwe’s monetary policy, for which the Reserve Bank of Zimbabwe is responsible, and since we are not part of the country’s monetary system, we would prefer that you refer the questions to the Reserve Bank, which is in a better position to provide the answers you need,” said Obi Emekekwue, the bank’s head of external communications.
COMMENTS
How can anyone trust Bond Notes when title deeds are utterly dishonoured,
Thieves monitoring thieves. What do you expect?
NOT AS EASY AS BUSING A PHD FROM A DUBIOUS UNI! !!!!!
Be interesting how the cross border traders are going to continue. They make up a vast number of unemployed people. How are they going to make a living now with 90% unemployment. DON’T DO IT….THERE WILL NE CIVIL WAR.
It is a great relief that it will be closely monitored! We can imagine that this will mean that the entire Central Committee and the Politburo will be all be on site to assist with Quality Assurance and Quality Control. Chief Quality Controller will be The Casino Clown Economist who will need abut $500 million to test out in the market, followed by Grace and Bob who will need about $900 million to try out in their dairy, Obert Mpofu will need about $999 million to test in his banks, of course Jonathon Moyo will not be left out – even at a paltry $850 million for mis-information and he will be disappointed. Then there will be the likes of Mpoko who could need about $750 million to test in the hotel he stays in. Professor Scoones will probably need another $980 million to do a PR campaign on the land reform programme. Let us not forget a few more like Van Hoogstraaten, Rautenbach and Bredenkamp may need to also do a bit of trial work with the new notes – and monitor their progress – around $700 million each may be a start? It looks really exciting now. I cannot wait to see the results.
You can Double all those figures !!!!
Somebody is going to be rich now. Just watch.
This is like leaving a Kindergarten class to run a school.
Zimbabweans know from bitter experience what happens when RBZ currency goes into circulation.
The bond coins are convenient. Bond notes will lead to disaster.
Why would any sane Zimbabwean accept them?
Give me US Dollars, Rands, Pulas, British Pounds, Australian Dollars – even Chinese Yuan – anything but notes issued by RBZ!