Mugabe gets bond notes Bill

Parliament has submitted to President Mugabe the Reserve Bank of Zimbabwe Amendment Bill, which seeks to enable the central bank and the Finance and Economic Development Minister to issue bond notes exchangeable at par value with the United States dollar.

This is according to a notice published in the Government Gazette on Friday by Speaker of the National Assembly Advocate Jacob Mudenda.

The Bill will also give legal backing to bond coins that were already in circulation. The law is applied retrospectively and came into force on October 31, 2016.

The President has 21 day to either assent to the Bill or send it back to Parliament if he considers it unconstitutional or has reservations about it.

In terms of the Bill the RBZ will determine the design, form and material of the notes and notify the public.

"In terms of Section 131(5)(b) of the Constitution of Zimbabwe, it is hereby notified that on the 7th March, 2017, the Reserve Bank of Zimbabwe Amendment Bill, 2016 was transmitted to His Excellency, the President of the Republic of Zimbabwe, for his assent and signature," reads the notice.

The Bill will give effective legal backing to the Bond Notes which first came into circulation on November 28, 2016.

The Bill reads in part: "This Bill will amend the Reserve Bank of Zimbabwe Act (Chapter 22:15) (No 5 of 1999) to enable the Reserve Bank, with the leave of the Minister responsible for Finance to issue 'bond notes' exchangeable at par value with the United States dollar, on the same basis that it previously issued bond coins.

"At the same time, the opportunity is taken to validate the issuance of bond coins currently in circulation, 'for the avoidance of doubt'."

Last month the Constitutional Court threw out an application by National People's Party leader Dr Joice Mujuru challenging President Robert Mugabe's powers to introduce bond notes.

The value of bond notes in circulation is US$88 million, markedly below the US$200 million Afrieximbank facility backing them.

The Speaker also announced submission of the Finance and Appropriation Bills to the President to give effect to this year's National Budget.

"In terms of Section 131(5)(b) of the Constitution of Zimbabwe, it is hereby notified that on the 2nd of March, 2017, the Appropriation (2017) Bill, 2016 was transmitted to His Excellency, the President of the Republic of Zimbabwe, for his assent and signature," reads the notice.