Business / Economy
Bond notes won't be over printed - promises RBZ
12 Nov 2016 at 09:18hrs | Views
Reserve Bank of Zimbabwe Governor John Mangudya has assured the skeptical country that he will never over print bond notes.
He said people should take comfort in that on the current bond notes, only $15 million out of the $50 million availed has been used.
"And the issue about over-printing does not arise because there are two safety measures.
"The first one is that if there are no exports there are no bond notes, that is why we did it that way. Five % of a hundred dollars is five dollars.
"If there is no hundred dollars there is no five dollars it's as simple as that" he said.
Mangudya said the the $200-million to be put into circulation was too little to cause inflation.
On bond coins he said "We put in place a facility of $50-million, to protect those coins, up to now we have only done $15-million.
"We don't have an appetite for just printing them because the money is there, no. In the whole economy of Zimbabwe we have only $15-million coins," he said.
He said people should take comfort in that on the current bond notes, only $15 million out of the $50 million availed has been used.
"And the issue about over-printing does not arise because there are two safety measures.
"The first one is that if there are no exports there are no bond notes, that is why we did it that way. Five % of a hundred dollars is five dollars.
"If there is no hundred dollars there is no five dollars it's as simple as that" he said.
Mangudya said the the $200-million to be put into circulation was too little to cause inflation.
On bond coins he said "We put in place a facility of $50-million, to protect those coins, up to now we have only done $15-million.
"We don't have an appetite for just printing them because the money is there, no. In the whole economy of Zimbabwe we have only $15-million coins," he said.
Source - Byo24News
