‘Trust our intention’: Mnangagwa

Source: ‘Trust our intention’: Mnangagwa | The Financial Gazette October 20, 2016

VICE President Emmerson Mnangagwa has said it was high time Zimbabweans started trusting government’s intention regarding the introduction of bond notes. This comes as negative sentiments over the imminent introduction of the Afreximbank-backed currency are waning investor confidence.
The bond notes are set to be introduced at the beginning of November as an export incentive. However, the cash situation at banks has deteriorated with some of the banks now failing to meet individuals’ daily withdrawal needs.

Cash is now trading at between 10-30 percent while there are concerns that the country could start experiencing fuel shortages.
The cash shortages and the subsequent panic has triggered a mini-stock rally with the Industrials Index gaining 2,7 percent to close at 108,05 on the back of increased trading activity across the board. Turnover was US$1 337 092.74 with foreign buys at US$4 667,97 against foreign sales of US$599 078,14.  The bulk of the money currently getting into the market is from private clients, who are now moving into assets as business is stalling due to the failure to import. Increased activity has also been seen in the property market.
While giving the keynote address at the launch of the Zimbabwe National Competitiveness Report, Mnangagwa said, while the bond note issue was topical currently, this would not be viewed as a way of bringing back the Zim dollar.
“As Zimbabweans, it is now time that we should start trusting each other’s intentions. We want to assure business and the general populace that bond notes are not going to replace the multi-currencies basket. In fact, the notes are coming in as an incentive to our exporters who play the critical role of bringing the US dollar into the economy. The bond notes are backed by a US$200 million Afreximbank facility and should not be seen as trying to sneak back the Zim dollar before the necessary conditions for de-dollarisation are fulfilled,” he said.
There have been calls for government to reassess the bond note project, which has created loss of confidence in the economy and instead negotiate for the US$200 million facility to be used to increase liquidity of the South African rand to the economy.
However at the same launch the Reserve Bank of Zimbabwe has said that Zimbabwe would not going to adopt the rand to ease liquidity challenges as it has its own challenges, chief among them being a likely increase in regional inflation.
“The US dollar is giving us a headache in terms of liquidity, if we adopted another currency except the dollar it is better to pick another currency, but certainly not the rand as it has its own challenges too,” Mnangagwa said.
While some economists suggested that Zimbabwe could become a member of the Common Monetary Union (CMA), RBZ deputy governor Kupukile Mlambo said the country could not do that as it does not have its own currency (a pre-requisite of joining) and that South Africa could not afford to print its currency for the region because it will become inflationary. Although the rand is legal tender in all the CMA states, the other members issue their own currencies. However, these are exchanged at par with the rand and there is no immediate prospect of change. FinX

COMMENTS

WORDPRESS: 5
  • comment-avatar
    George Gwindiri 6 years ago

    Trust? Who in his/her right mind can trust ZANU PF? Thieves are spirited from police custody by one of the two vice presidents. A cabinet minister is still running around, free as a bird, despite being fingered in an over half a million dollars fraud? Elections are rigged. Government opponents are beaten, tortured, murdered or disappear?

  • comment-avatar
    Homo Erectus 6 years ago

    Hey! Mnangagwa -why should we start trusting you? We trusted you guys for 36 years, and look what we got for it: nought, nothing, nada, no food, no medicines, no schooling, no governance, no money, no agriculture, NOTHING NOTHING NOTHING. You people think that we are idiots. Within one week of the bond note arriving you will be history. So, bring ’em on. The sooner you lot go, the better for us.

    • comment-avatar
      Noddy 6 years ago

      We do. I trust this government to use bond notes to steal what little is left in Zim. So Mr. Crocodile yes I TRUST this government intensions

  • comment-avatar
    Zambuko 6 years ago

    Trust the Untrustworthy!

    Let me Think.

    No.

  • comment-avatar

    “As Zimbabweans, it is now time that we should start trusting each other’s intentions. ………”, said ED Mnangagwa.

    This is a very sad statement, for various reasons; including:
    – This guy is talking of “each other’s intentions” . Who the hell is “each other”? We all know it is zanu pf’s intention which can never be trusted by anyone in his/her right senses – and everyone knows why.
    -Why should anyone trust zanu pf (or even EDM himself)? Is it ever possible given all the waywide & scandalous behavior they have shown & continue to show to all and sundry even as EDM is busy clownishly calling us to trust them.
    – Wouldn’t it be sensible for EDM, if ever he was serious, to start calling his colleagues in zanu pf and their politburo, in particular, to stop subverting the constitution & stop encouraging thieves like Jonathan Moyo to continue looting national resources? Zanu pf government sets up ZACC ostensibly to fight corruption, when a prominent zanu pf thief is caught with his fingers dip into national coffers, then zanu pf turns against ZACC & literally substitutes it with some unconstitutional group of zanu pf apologists. Who on earth can trust such idiots!
    -What is the basis for anyone to trust zanu pf thieves & cheats of note? For all we know, trust is earned it is never asked for and/or demanded. So, zanu pf, and even EDM himself for that matter, must earn trust.
    -As for EDM himself, why would anyone trust him when all the people in his home town of Kwekwe could not find reason to trust; him leading him to relocated to some bushy & generally unknown constituency where he has been busy contesting himself till recently when he handed over the obscure constituency to his wife.
    – ………… Nxaaaaaaaaa!