DEALERS that have set up companies to “burn” cash have been cautioned ahead of the coming of the bond notes in November.
Source: Mangudya warns cash dealers – NewsDay Zimbabwe October 28, 2016
BY VICTORIA MTOMBA
Speaking at the Zimbabwe National Chamber of Commerce (ZNCC) breakfast meeting in Harare yesterday, Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya said selling money was not a business, but one needs to produce something other than money to be called a businessman.
“Some of you think you are going to ‘burn’ the bond notes. The dealership mentality does not build a country.
That’s why I become emotional when I am talking about this issue. In fact, we are issuing a statement on Friday (today) or Monday to warn those who are opening companies to externalise currency. We know the people behind it,” he said
Mangudya said the features of the $2 and $5 bond notes would be unveiled during countrywide campaigns by the central bank.
He said the idea was to have the bond notes as scarce as possible.
“Some of you will be asking me where the bond notes are?,” Mangudya said
He said RBZ has been quiet on the notes because they were waiting for the legal and due processes to be finalised.
Bond notes are coming under the $200 million export incentive, where exporters get an extra 5%.
Mangudya said nationwide campaigns will begin on Monday, as the bond notes were expected to be in place in November.
“We are finalising the independent board on the issuance and managing of the notes. Let’s not panic about bond notes, but should panic about being poor,” he said.
Consumer Council of Zimbabwe executive director, Rosemary Siyachitema said they had carried out a survey of 300 consumers, who were sceptical about bond notes and were scared of being poor and impoverished.
She said some of the questions from consumers include clarity on how the bond notes would help, some were afraid that it was a way of bringing back the Zimbabwe dollar.
“We don’t really have a choice. We also want a Zimbabwe that is operational. Remember the coin we embraced it because we want a Zimbabwe that works, but there are a lot of things that have to be resolved,” Siyachitema said.
Economist and academic, Ashok Chakravarti said there was need to cut the unsustainable government wage bill, which was chewing over 96,7% of revenue.
Chakravarti said giving incentives on minerals would not make a difference, as the prices were usually determined by the international market, therefore, there was need to put a 10-15% incentive on non-traditional exporters through a 2 to 3% import tax.
“I am not in favour of the $200 million facility; let’s finance the export incentive through a minor import tax. I have been advocating the use of the South African rand since 2009. It is possible to have the rand internally without joining the union and we didn’t get the permission from South Africa to use the rand in 2009,” he said.
COMMENTS
Expect that he wants to reserve the money burning business for himself and his friends
The Bomb Currency is actually for Robert Mugabe – so that he may draw off some more diasporan remittances for his family in exchange for some Mugabe toilet paper. The RBZ Guv might need to think about for whom he is doing this dirty deed!
When you add up all the ‘minor’and major import taxes we already have in place, we really don’t need any additional ‘minor’import taxes.
And what’s illegal about ‘selling’ money? It’s what we do every time we go into a shop and ‘buy’ something. Mangudya is a pedant.
HOKOYO FELLOW ZIMBABWEANS
These Zimbabwe bond notes or counterfeit US dollars will lose 90 per cent of their value within the first week of their release – of this I can guarantee – hold onto your US dollars under your bed or in your own pocket at all times comrades !
Zimbabwe Stock Exchange – most important happening here is that the price of Old Mutual plc (OML) in Zimbabwe is USD 3.20 and in SA and UK USD 2.45. So for the first time in about 6 years OML is trading at a premium in Zimbabwe compared to it’s share price in SA & UK.
The premium is 30 per cent which means that Zimbabweans are paying a 30% price above the going rate to protect their USD’s.
This means that the financial markets in Zimbabwe are predicting that the ZW Bond notes soon to be issued will lose at least 30 % of their value on day one of their issue when compared to the US dollar. Financial markets in Zimbabwe are never wrong.
Fasten your seat belts comrades and hold onto your US dollars at all costs
Zimbabwe’s central bankers never learn – Bond notes
United States based economics professor, Steve Hanke, 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.
When the blind lead the two eyed!!!
Chaa CHIBVONGODZE pa Zimbabwe kkkkkk!!!
They will follow the strategy they used to lull us into acceptance of coins – i.e. change at the supermarket tills. Hence the small denominations.
If the desensitization works, the real scam, the bigger notes, will follow next year…
Rbz you will not take us down u play games with us we will play game with you just keep that in, mind.