Source: RBZ introduces bond notes to ease cash crisis – NewZimbabwe 04/05/2016
ZIMBABWE will soon see the introduction of bonded notes to the tune of $200 million as government finds itself in panic mode in the wake of a worsening cash crisis which has seen banks limiting cash withdrawals by depositors.
Addressing the media in Harare Wednesday, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya announced a raft of measures which he said shall help ease the strain.
Top among them is the introduction of bond notes which he said shall help boost liquidity in a country which abandoned its own currency in 2009 for the current multi-currency system.
Among the measures, he said, was the introduction of a new family of bonded currency, which shall include localised notes to operate with the same value as the US dollar.
“The Zimbabwe Bond Notes of denominations of $2, $5, $10 and $20 shall, therefore be introduced in future, as extension of the current family of bond coins for ease portability in view of size of the USD200 million backed facility,” Mangudya said.
“The facility shall also be used to discount trade related paper in order to provide liquidity for business trading operations.”
Zimbabwe already has a family of bond coins which were introduced by government in December 2014 to provide loose change to Zimbabweans who were rounding off prices to the next dollar.
The bond coins already in circulation are in denominations of 1 cent, 5c, 10c, 25c and 50c.
Zimbabweans are sceptical of their government and have often resisted attempts to reintroduce the Zimbabwe dollar which they blame for the loss of their savings during the hyper inflationary period before 2009.
Currently, the government is at pains to pay its bloated workforce but has no money to use.
COMMENTS
Welcome bak mr Zim dollar we greatly missed u
This is a new term for Bearer Cheques. Zanu is printing money again against no security at all. When Gono did this he called it an Casino Economy. When the RBZ minted the coins that I saw in Harare just over a year ago I was pretty confident that they (the coins) were the thin end of the wedge of the govt trying to use its printing press again. What remains to be seen is if Biti, Tsvangirayi, Cross and Coltart come back to Zanu’s rescue and feel sorry for them?
As soon as a government resorts to the printing press it is an indication of being on the ropes. As soon as a weak or naive opposition gets sucked in to such a thieving government we can rest assured that they (the MDC) did not learn from their GNU. Just as we queried why the MDC would go into a GNU when ZPU were on their way out of the Unity Agreement the polished response from the MDC was – “we are not that stupid.” That was in 2009 and now 7 years later there has been no resolution. If the MDC hold hands with Zanu again – the MDC are the actual problem for the people of Zimbabwe.
The cash crisis that the govt refers to is a Zanu cash crisis – created by zanu. The printing of notes allows al and sundry in Zanu (i.e. the top mujibas) to get a piece of the press. The top Mugabe Mujibas will be on the pay roll changing their Bonded Notes for real US Notes. In a matter of time the Mugabe Bonded Notes will be used for their proper worth – toilet paper if they are freshly minted and clean – or as fire lighters if they are soiled. Mugabe Bonded Notes are another fraud.
This is a sensible and pragmatic move by our leaders.
1 Bond Mugabe dollar = 1 US$ in the morning
100 Bond Mugabe dolla = 1 US$ in the afternoon
1,000,000 Mugabi dolla = 1 US$ tomorrow
Fast forward to 2008
Hyperinflation and empty shelves in all the shops
We must never accept these bond notes.
RAMBAI
Dumb founded, Confused, yes, surprised NO.
Hello 2008 here we are again.
Did no one learn from 8 years ago. Prepare for total poverty for the Masses the rich will get richer we the poor will starve yet again.
REVOLTING attitude to the situation.
We were packing up the personal effects of a family member in her 90s who emigrated to South Africa in 2003 after the peace loving, kind hearted, loving father legends Mugabe and Zanu stole her home of over 50 years, in 2003. Amongst the personal possessions was a wad of $500 Zimbabwe Bank notes ever so kindly signed by the Casino Clown Economist Gideon Gono and then we came across another wad of $10 000 Zimbabwe Bearer Cheques – also so kindly signed by the Casino Clown Economist. It is quite something to comprehend when confronted with the history of the Zimbabwe currency under Zanu. Fortunately we had taken a friend with a great sense of humour to Cape Town with us. Our friend – a free lance comedian insisted on using the Zimbabwe $100 million/trillion notes as tips all the way from Johannesburg to Cape Town and beyond – particularly as he felt that those most in need of his generous tip were in fact continental tourists on the Cape hoilday trail. His reception was entertainment at its best – there were emotional reactions across the spectrum. The continental tourists in the Karoo were dumbfounded by our comedian’s generosity. Of course there is a serious side to his joke that those he entertained could not see. The comedian had been a teacher in Southern Rhodesia and Zimbabwe for 50 years and the notes he was tipping them with were in fact his pension that Robert Mugabe, Gideon Gono and Ian Scoones took upon themselves to steal with the use of the Zimbabwe Printing Press. The wonderful thing about Zanu is that they have worked out (forged?) a new way to do it all over again. This time they have a new Casino Clown Economist to sign the Illegal Tender of Theft. Not only will there be a new name on the note but they will be called Bond Notes – not Bearer Cheques. By changing the names of the Illegal Tender and getting a new forged signature on the Bond Note – Zanu will hoodwink the MDC and the people of Zimbabwe to buy into their latest round of theft like they did with the elections and the Constitution?
I suppose it was a matter of time. Only in Zim government could destroy the US dollar.
What does the USD backed bond notes mean. Where is this money that is backing the Zim bonded notes. Who is ensuring that the value of these notes is equivalent to the usd. There is a great risk which Zimbabweans will find themselves in just like what is the case now. Mugabe and Grace and his cronies are busy taking away the USD and hence the shortages of currency dumping the 50 million coins. Also are these 50 million back notes still 50 million worth USD. My fellow compatriots be ware of the team of Mangudya and Mugabe. There will be another denomination of backed notes before year end when they start failing to pay civil servants. Any thing that Mugabe and his ZANU PF does does not hold water because of his greedy
Better for Bob to to go with the Korean WON currency of his Genocidal partners .
That would be a steady diet of dog eat dog
Once beaten twice shy.This situation was not supposed to resurface.The government has just proved that it is incompetent and clueless as to how to foster economic turnaround.
Mari makaisa kupi.Makaija ka vanhu veZanu pf-MUCHITENGA MAZIMOTA,MUCHIVAKA MAZIMANSIONS MUCHIENDA KUMA SHOPPING SPREES KUNANA DUBAI KA.Saka maiti haiperi.Now we are back to 2008.HAAA MAKAOMA MAFOIRA.
Enough is enough pleeeeze I think its time to decide, make up your mind what you want to do
so the people can carry on with their lives.
The President will create The Bullion Bank of Africa in Zimbabwe today save the economy and the financial runs Zimbabwe . The Bullion Bank of Africa will alow the country of Zimbabwe to renew it’s status and become self-sufficient
Robert Rosenthall