Zim investment community rejects bond notes

Source: Zim investment community rejects bond notes – The Zimbabwe Independent June 30, 2016

DELEGATES attending a financial services sector indaba dubbed Financial Markets Indaba yesterday rejected central bank governor John Mangudya’s controversial plan to introduce bond notes saying the move is marred by lack of confidence.

The event, attended by executives from the financial services sector as well as top industrialists, unanimously voted against introduction of the bond notes during a poll initiated by facilitator Nigel Chanakira.

“If the bond notes are 3% of the monetary circulation why go through all this trouble? Give us something else besides the bond notes. The market does not want them so if the Reserve Bank governor is a listening man, as he has said, please remove the bond notes,” Chanakira said after the poll.

“The foreign exchange is skewed towards the dollar, why not focus on the Japanese Yen, South African Rand, or Botswana Pula,” Chanakira added.

RBZ exchange control deputy director Farai Masendu said the United States dollar had become an asset, creating cash shortages that have prompted government to act.

“As a result of the dollar becoming an asset, if any new money comes into the market we are bound to lose and see it taken out,”Masendu said.

Chanikara, founder of the now defunct Kingdom bank and immediate past Zimbabwe Investment Authority chair, said Zimbabwe had registered tremendous progress on the ease of doing business reforms in the first 100 days of implementation with key deliverables being reduction of time it takes one to register a company from 90 days to 13 days.

“We still want to reduce if further in line with international standards,” said Chanakira.

He said councils had scrapped registration fees for companies while insolvency laws were also improved.- Taurai Mangudhla

COMMENTS

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    Joe Cool 6 years ago

    This is absolute rubbish – “A dollar is an asset”. A dollar is a dollar, and nothing more. It has an exchange rate with any other currency and, if you live in a normal country, you can obtain them without any difficulty by exchanging your own currency for them.