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'Zimbabwe won't print bond notes outside framework'

by Staff reporter
26 Jan 2017 at 05:43hrs | Views

Finance and Economic Development Minister Patrick Chinamasa has said Government will not print bond notes outside of its framework with the Afrexim Bank as it has a reputation to defend.

Speaking during a debate on the Reserve Bank Amendment Bill in Parliament on Tuesday, the Minister said the bond notes will be printed up to $200 million as per the facility that was concluded with the Afrexim Bank.

He said he was on cloud nine because the public had embraced bond notes.

"I also need to point out Mr Speaker Sir that  measures will be taken to ensure that we are disciplined in the issuance of bond notes. We will do all within our powers to ensure that the process is transparent and does not go beyond what we have told the public. It is more important for us than it is for the public," he said.

"We have a reputation to defend, the Central Bank Governor and myself and we will not do any foolish things that will not even win us the votes. It is very important and 2018 elections are around the corner, we cannot afford to do foolish things which we are being accused of. We are not foolish people; we will do the correct thing which will maintain the value of the bond notes."

Chinamasa said bond notes were not introduced to address cash shortages but to stop capital flight and they are already beginning to achieve that.

He said with the introduction of bond notes, the country has moved away from an over-liberalised foreign exchange market to one which will be managed.

"That is already being implemented and I am very pleased with the results, I am also pleased with what is happening, we are now beginning to see redeposit of bond notes, which suggest that it is now accepted as a medium of exchange and circulating," said Chinamasa.

Most lawmakers commended the introduction of the bond notes into the economy.

"We have SMEs that are now operational because of the money that is available.

"Those that sell tomatoes, crotchet work are able to do so because there is money in circulation," said Uzumba MP (Zanu-PF), Simbaneuta Mudarikwa.

He said bond notes had also brought relief to farmers.

"I have said that our farmers in the communal lands are now able to buy fertiliser because there is now money in circulation," he said.

Zanu-PF Matabeleland South Proportional Representation MP Rossy Mpofu said bond notes were benefiting businesses.

"The other thing Mr Speaker Sir, is that small business people are happy because they are now receiving money since people are buying using bond notes," said Mpofu.

Zanu-PF Hurungwe East legislator Sarah Mahoka weighed into the debate saying people were happy following the introduction of bond notes.

"The 10 provinces are happy because of the bond notes. We went round all the provinces and people said they were happy with the bond notes," said Mahoka.

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Source - the herald