Chaos rocks bond notes introduction

THERE was commotion in Harare yesterday, as some retailers refused to accept the newly introduced bond notes, saying they were still to acquaint themselves with the key security features of the surrogate currency.

Source: Chaos rocks bond notes introduction – NewsDay Zimbabwe November 29, 2016

BY OBEY MANAYITI/VICTORIA MTOMBA/TATENDA CHITAGU

This comes as bankers also raised concern over the manner and timeframe in which they were told to collect the bond notes on Sunday.

The Reserve Bank of Zimbabwe (RBZ) sprung a surprise on Saturday when it announced the introduction of the bond notes, which went into circulation yesterday.

At one of the shops, NewsDay witnessed security guards having a torrid time trying to restrain angry customers, who were demanding answers on why the supermarket was refusing to accept the notes, while shop attendants said they risked accepting fake notes, as they were unaware of the security features.

Their explanation did little to calm restive customers, who were then joined by vendors in blasting the hasty release of the bond notes without adequate education.

NewsDay was inundated with calls from people complaining that some retailers were refusing to accept the new notes.
Some accused the RBZ of waylaying them on the matter, as they expressed fears that they might end up receiving fake notes.
“The problem is that the RBZ didn’t give us enough time to learn the security features, as former governor, Gideon Gono did. They should have released the specimens in time,” Isaac Mudzi said.

Despite the backlash, RBZ governor, John Mangudya defended his actions.

“There was no ambush at all. That’s the normal standard process of introducing new notes. Banks were advised on Sunday,” he said.

In the informal sector, some people said they would accept the notes once the formal sector embraced them, while vendors expressed reservations.

“Although we are accepting the bond notes, it still remains to be seen if they will also be accepted where we buy. I think we needed some education focusing on the security features,” Tendai Murambwa said.

Vendors Initiative for Social and Economic Transformation director, Samuel Wadzai said they held a consultative meeting with their Harare Socio-Economic Champions, where it emerged that the informal sector had no confidence in the bond notes.

“None of the 25 who attended is ready as yet to transact in bond notes. Our membership does not have confidence in bond notes,” he said.

Some shop operators in Harare said they would accept the currency out fear of victimisation if they refused.
At some service stations, fuel attendants told NewsDay that they were accepting the bond notes,

COMMENTS

WORDPRESS: 4
  • comment-avatar
    Morty Smith 5 years ago

    There is no confusion. Bonds are an attempt by ZANU to forge their own US$. A Bond is not a US$ and never will be. Just try and spend one anywhere in the world except Zimbabwe and you will know the truth. Any “chaos” is occasioned by persons not wanting to exchange their goods for this valueless currency. This is perfectly understandable. If you are dumb enough to accept Bonds and then find they are worthless it is your own fauld

  • comment-avatar

    They will be used to pay utility bills, tax bills, council bills and bank deposits. In a very short time the power companies will be disconnected as they will have no real money to pay for imported power, there will be no petrol or diesel and the shelves will be empty and the banks will have only worthless bond notes to pay out. THE END.

  • comment-avatar
    Mazano Rewayi 5 years ago

    Even if we Zimbos were served s**t as lunch we will still sit and argue among ourselves that it is the only food around, that the smell will go away after swallowing, that it will help us live another day! We suffer from collective folly. Since when did newsprint become money? A frog by any name is still a frog, no amount of lipstick will make it Miss World. All we need to do is to collectively say enough is enough. We suffer from some rare form of “HIV” syndrome by which we are all slowly and certainly dying but each believes they will be fine, that they are healthier than the next fellow, that salvation is near. We are all sick and getting worse. A mass cure is urgently needed. And we all know what it is. We all know that those who cause problems cannot solve them, yet still cling on to some foolish hope. Our salvation cannot be delegated anymore. Take action.

  • comment-avatar
    nelson moyo 5 years ago

    Zimbabwe’s central bankers never learn – Bond note
    United States based economics professor, Steve Hanke, who was one of the biggest critics of Zimbabwe’s bearer cheques during the country’s hyperinflationary era ( 2008), wrote on Twitter this week: “I warned Kupukile Mlambo of RBZ in May that Zimbabwe bond notes would create chaos. The RBZ is learning the meaning of chaos.”
    Mlambo is one of the two deputy governors at the RBZ.