Source: Embrace bond notes, says VP Mnangagwa | The Herald June 3, 2016
Vice President Emmerson Mnangagwa has urged Zimbabweans to embrace the bond notes set to be introduced into the economy by October.
Addressing Zanu-PF supporters gathered at Sino Cement Company in Gweru yesterday, VP Mnangagwa said the Reserve Bank of Zimbabwe (RBZ) would soon introduce bond notes, saying these would boost internal trade, cut on externalisation of the US dollar by individuals and companies and ease cash shortages in the economy.
The planned bond notes are backed by a new $200 million bond facility from AfreximBank.
The facility will be implemented through the medium of bond notes in denominations of $2, $5, $10 and $20.
The US dollar and rand in circulation had been run down to below $300 million, he said.
The bond notes are set to operate as an extension of the current family of bond coins which were introduced in December 2014 to address the challenge of small change in daily transactions.
VP Mnangagwa, who is on a two-day tour of manufacturing industries in Midlands Province, said the public should make use of the bond notes which were to help boost economic activity.
He said at the moment, with depreciation of regional currencies, everyone was after the United States dollar which is in daily use in Zimbabwe.
“We want our economy to get out of the doldrums. We have been under the illegally-imposed sanctions for the past 16 years which affected productivity leading to the closure of companies. As a result, we ended up dumping our Zimbabwe dollar for the multi-currency regime. But because we don’t print the US dollar, all Sadc countries don’t have the US dollar and they are coming to raid Zimbabwe. Even those who trade in tomatoes come here and get the US dollar. If we sell anything in Zambia, we get kwachas, Botswana pulas and that has resulted in the shortage of the US dollar in the economy,” he said.
“In February 2009, we had US dollar, euro, and pound but as time progressed, US dollar gained value and everyone now wants the US Dollar.”
VP Mnangagwa said the bond notes had the same value as the US dollar.
“The Government, with a loan of $200 facility, is introducing bond notes. They will be equivalent or backed by the $200 loan facility. So if they start circulating, they won’t be stolen or externalised since the notes don’t work outside the country. The bond notes will have the same value as the US dollar. They will be banked in the same account as the US dollar,” said the Vice President.
He said it was high time Zimbabweans worked together and accepted that solutions for economic recovery should come from within.
Today the VP tours industries in Kwekwe.