Opinion / Columnist
Bond notes now out but...
28 Dec 2016 at 20:55hrs | Views
Policy formulation is followed by policy implementation and finally policy review. The cycle continues again and again. RBZ did a good job to introduce bond notes as an export incentive and to ease the cash shortages in the economy. Now, bond notes are circulating in the market. People are using them as legal tender.
The issue is on the implementation process. I wonder if RBZ is aware of what is happening on the ground concerning cash issues. There should be a strong monitoring mechanism so that implementation won't divert from the goals and objectives of the system. This calls for the involvement of different stakeholders who will be working in harmony.
Of great importance is acceptance and availability. Firstly, I will touch on availability. You raised the withdrawal limit to $300 but some banks are putting it at $100. The shortages will continue in this case. Some people are allegedly getting large sums of money from banks at interest rates between 10 % and 14%. For those who need to withdraw their full salaries, arrangements are made at a fee. Circulating on watsup groups are adverts of people selling cash at the same rates. The queues are still there and they appear for many hours outside banks. Nowadays, it is hard to transact a cashout using Ecocash facility, yet very easy to do a cash in. The operaters are ready to receive money from customers but not ready to part with it through a cash out. At the end of the day they do a once off cash out to a cash baron who gives them some money on top. We need the Ecocash service as a nation but now what the operators are doing amounts to sabotage on one of the country's cash system.
Secondly, I move on to the issue of acceptability. Generally, the bond note is being accepted in most businesses. This is quite welcome. There is a development that has surfaced especially in the shops owned by Indians. They are removing their stock of goods from display. If a customer wants to buy they ask for partly bond notes and partly US dollars for payment. This is happening in Harare. Right now, the ordinary person in the country has bond notes as what he/she calls money. Acceptability should be complete and no portion of the economy should deny bond notes although we are using a multi-currency system.
Control measures are needed not only on paper but on the ground in order to protect the general public that you are serving from the time you took up those leadership posts. There is need to curb selling of cash based on the bond notes or cash in the bank before it gets out of proportion. Doctor, you said the bond note will be at par with the US dollar so let it be even on the ground. Zimbabwe, together we stand divided we fall.
The issue is on the implementation process. I wonder if RBZ is aware of what is happening on the ground concerning cash issues. There should be a strong monitoring mechanism so that implementation won't divert from the goals and objectives of the system. This calls for the involvement of different stakeholders who will be working in harmony.
Of great importance is acceptance and availability. Firstly, I will touch on availability. You raised the withdrawal limit to $300 but some banks are putting it at $100. The shortages will continue in this case. Some people are allegedly getting large sums of money from banks at interest rates between 10 % and 14%. For those who need to withdraw their full salaries, arrangements are made at a fee. Circulating on watsup groups are adverts of people selling cash at the same rates. The queues are still there and they appear for many hours outside banks. Nowadays, it is hard to transact a cashout using Ecocash facility, yet very easy to do a cash in. The operaters are ready to receive money from customers but not ready to part with it through a cash out. At the end of the day they do a once off cash out to a cash baron who gives them some money on top. We need the Ecocash service as a nation but now what the operators are doing amounts to sabotage on one of the country's cash system.
Secondly, I move on to the issue of acceptability. Generally, the bond note is being accepted in most businesses. This is quite welcome. There is a development that has surfaced especially in the shops owned by Indians. They are removing their stock of goods from display. If a customer wants to buy they ask for partly bond notes and partly US dollars for payment. This is happening in Harare. Right now, the ordinary person in the country has bond notes as what he/she calls money. Acceptability should be complete and no portion of the economy should deny bond notes although we are using a multi-currency system.
Control measures are needed not only on paper but on the ground in order to protect the general public that you are serving from the time you took up those leadership posts. There is need to curb selling of cash based on the bond notes or cash in the bank before it gets out of proportion. Doctor, you said the bond note will be at par with the US dollar so let it be even on the ground. Zimbabwe, together we stand divided we fall.
Source - Joe Bloggs
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