RESERVE Bank of Zimbabwe (RBZ) governor John Mangudya yesterday dismissed claims that counterfeit bond notes were already in circulation.
Source: No counterfeit bond notes in the country: Mangudya – NewsDay Zimbabwe November 7, 2016
BY NQOBANI NDLOVU
Mangudya’s statement came in the wake of claims by Finance minister Patrick Chinamasa that unscrupulous characters have already printed counterfeit bond notes.
Chinamasa on Thursday told parliamentarians during a pre-budget seminar in Bulawayo that fake notes have been printed to coincide with the release of bond notes in order to confuse the situation, remarks that were set to further dent the credibility of the surrogate currency.
But Mangudya immediately rubbished the claims by his boss, arguing there were no counterfeit bond notes because the notes were still with the printer and no specimen had been released.
The RBZ boss said Chinamasa was referring to social media jokes on bond notes when he said counterfeit notes have been printed. He said it was impossible to have counterfeits before specimen notes have been unveiled.
“I can confirm that the bond notes are still with the printers and delivery has not yet been done. No fake bond notes are in circulation, in existence in the market,” Mangudya told reporters on the sidelines of a pre-budget seminar held at the Zimbabwe International Trade Fair (ZITF) on Thursday.
Mangudya, however, refused to disclose where the bond notes were being printed, claiming the RBZ signed a non-disclosure deal with the service provider.
He denied that the bond notes were being printed in neighbouring South Africa after a German firm, Giesecke and Dverient, declined to print the surrogate notes aimed at alleviating the country’s cash shortage.
“We signed non-disclosure agreements with the printers and this means that we can’t disclose.
“We haven’t taken delivery (of the bond notes), they are not being printed in Germany or South Africa,” he said, adding confusion to the mystery surrounding the printing of the notes.
Mangudya said that by the end of December, at least $75m worth of bond notes would be in circulation, but in small denominations to curb inflation.
“We have small denominations because small denominations don’t cause inflation. We are in a deflation and that’s dangerous because we will end up in recession. The bond notes will be in circulation before the end of this month,” he said.
The bond notes are set to come into circulation after the gazetting of Statutory Instrument (SI) 133/2016 by President Robert Mugabe last week under the Presidential Powers (Temporary Measures)(Amendment of Reserve Bank of Zimbabwe Act and Issue of Bond Notes).
Legislative watchdog, Veritas, has argued bond notes should only be in circulation for 180 days as Mugabe’s decree is only valid for six months.