Uncertainty over bond notes only making things worse

THE bond note circus keeps rolling on and Zimbabweans are none the wiser on what is going on, only leading to anxiety and ultimately rejection of the currency.

Source: Uncertainty over bond notes only making things worse – NewsDay Zimbabwe Nov 27, 2016

Comment: NewsDay Editor

Firstly, President Robert Mugabe gazetted amendments to the Reserve Bank Act, but now after the realisation that this move was patently unconstitutional, the government has belatedly decided to go the parliamentary route.

This week, Finance minister Patrick Chinamasa announced that they were suspending some parliamentary processes to fast-track the amendments.

A schedule has also been released on the public meetings to be held before the bond notes legislation goes to Parliament and is finalised.

To all this, there is a backdrop of media reports that the bond notes would be introduced this week, which ends today, while Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya said they will be out by November 30.

This means one of two things: Either the bond notes are not coming out before the end of this month or the parliamentary process is just a smokescreen. Either way, this will not help the new currency get approval from an already sceptical and highly untrusting public.

If Mangudya were to go ahead with his plan to introduce bond notes by the end of this month, this will mean the public would be barely acquiesced with the currency’s security features, a sure recipe for disaster.

In the meantime, there have been a number of court challenges to the bond notes, which betray a lack of planning from the authorities, as, if they had planned and thought the process through, they would have eliminated the possibility of these mounting lawsuits.

In hindsight, Mangudya should have only announced bond notes when he was sure what form they would take and how to counter any possible lawsuits and legal hurdles.

He might not have anticipated such a response, but the continued delay and uncertainty in introducing them is only making things worse.

Even for the ordinary person, who may genuinely believe that bond notes are a panacea to the cash shortages or externalisation of money, the delay in introducing them is only heightening anxiety.

Sceptics among us then speculate that the government is not pulling in the same direction regarding the surrogate currency, as there can be no logical explanation for this confusing state of affairs.

Government ministers have also been inconsistent in telling the nation how the currency will be used and this has further added to the disquiet.

If the bond notes are not ready or the legal framework is still questionable, then Mangudya should stop announcing dates of when the currency would be introduced, as setting dates only puts pressure on banks, as more people rush to withdraw their money before the notes are introduced.

The government has a duty to rid the country of this uncertainty and anxiety, as this will only increase mistrust and rejection of the bond notes.

COMMENTS

WORDPRESS: 4
  • comment-avatar
    VaChihera: Professor 5 years ago

    Dear Zimbabweans, The introduction of a tenth currency called BOND NOTES in Zimbabwe today has been announced before parliament which represents all of us checks theauthenticity ofthe 200 million bank loan and before legislature to protect us.Everyone must check with their banks. Why hasthis happened?
    Miss rule of course and a clear case of AUTOCRACY. What is there to hide Hon Minister Chinamasa? That it is a directive from HE! Why whythe citizens ask, wethoughtit is governmentof the people forthepeople, whathas goneawefully wrong the population is asking. Why take us for a ride? This is 21st century where ICT has openned us all to world’s best practices. My analysis isthat our politicians have lostallETHICS tothe devil. We need to pray for them, they are a sorry sight. We then have to ridethe wave and face the challenges right head on. The Auditor General should strictly monitor the RBZ, an animal we DO NOT TRUST, full of liers whose mandate seems to benefit mostly political leaders and their connections to keep their posts. Who will stop RBZ from printing the missing billions? We are yet to receive Zim dollar compensation since December 2008!!! How has RBZ worked outevery account is worth usd5? Which logic did RBZ use????
    The bond notes will not ease usd shortages in circulation as people will keep their hard earned usd out of banks, use the 5million diaspora relatives’ bank accounts to ship whatever is left OUT peacefully. Then what will happen? Zimbabweans are SMART with lots of MATHS. You can’t beat them twice. The public economy will fall and individuals will be more empowered, mark my words. It will be once more ‘animal farm’s mentality. Mark my advice. Be advised. VaChihera: Professor

    • comment-avatar
      Tsotsi 5 years ago

      Illiterate ramblings. Zimbabweans are cowards, so they will do NOTHING.

  • comment-avatar
    Barry 5 years ago

    What uncertainty? When has this pack of clowns ever given us a heads-up when they do something corrupt, stupid or both? Answer, never.

    But they’ve deliberately generated a hoo-ha over this latest round of monkey money for 6 months. Why? Because they WANT us to panic. Why?

    So there will be devaluation.

    They’ve stolen 4 billion from the nostra accounts and soon will be able to pay it back wirh 4 million once their monopoly money does its thing.

  • comment-avatar

    Issuing of bond note is postponed once more.
    Monopoly money with the same value is to be issued instead.
    Don’t pass go.