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Is bond and RTGS the official currency of Zimbabwe? Govt must walk the talk on currency reforms

03 Jan 2019 at 07:47hrs | Views
When the current minister of finance and economic development was tipped of his imminent appointment he spelled out what seemed to be his objective, that is to remove bond note and either adopt the Rand or the United States dollar by the end of December because he believed that was the source of Zimbabwe's economic problem. Unfortunately when he got into the office he realized that the government was broke and was stealing real money from importers and giving them the bond and valueless RTGS.

When Mnangagwa took over power he pretended he was for austerity measures. He pretended he wanted to reduce government expenditure, he even refused to be given his salary in cash as his predecessor Robert Gabriel Mugabe. He even reported for duty as early as six o'clock in the morning and everyone including the writer of this article had hope in the new dispensation.

Alas these guys got drunk with power. They upped their spending by buying cars for chiefs, service chiefs, cars for the aspiring Zanu PF candidates and upped their security thanks to the assassination attempt which gave them an excuse to up their expenditure on their security. State of the art fuel guzzlers where bought milking the state of the hard earned foreign currency. The campaign material which never paid duty was imported from China without impunity at the expense of importing basic commodities. Mnangagwa and his government wanted to win the elections at whatever cost. They abused the scarce foreign currency reserves towards the election forgetting that there was life after election. The result is there for even the blind man to see. Shortages of basic commodities and resources needed by the manufacturing industries. It is now common knowledge that if you hear the minister of energy and power development saying we have enough fuel you realize we have a great shortage. Their truth is exactly the opposite. They claim the bond not is at par with the US dollar yet the truth is the opposite. What a shame.

It is companies like Chicken Inn and delta who have seen the light early and realized that their investments would come to naught if they continued to sell their products in bond notes. Chicken Inn has a two tier price, one for bond and the other for US dollars. Delta has just issued a statement that starting from the fourth of January all its products are being sold in US dollars. This was to allow it to import the necessary ingredients from Swaziland. The clueless minister of industry and commerce a comrade Ndlovu comes out guns blazing that this is a crime. What a crime? The crime is the one they are doing arresting people peddling foreign currency on the street which was the main source of funds by these companies. The minister must remember that it is this same government that claimed that bond note was there to facilitate easy of doing business as a source change. Now the clueless vice president is now saying we don't manufacture US dollars so we can't afford to pay the striking doctors in foreign currency. Smell the coffee Mr Government man we are using multiple currency and its official. Pay the children US dollars as they demand and remember your bond note is useless paper.

When the bond note was being forced on people, they resisted. They resisted heavily. The Evan Mawarires, the Paul Madzores, the MDC and even us the laymen argued that we don't need this evil. Mangudya said if the bond note was going to be rated and found on the street he was going to retire. Unfortunately the man is still there and the bond note is not found in the bank but its on the street. The bond note is also being rated. The banks are only there fo RTGS transfers. What a hypocrite is this worst reserve bank gorvenor.

It is these underlying factors Mr government man that you need to consider. Advise us accordingly whether the official Zimbabwean currency is the bond note or a basket of currencies. Why are you licensing bureau de changes if our currency is a basket of foreign currencies that include the Rand and US dollar just to mention but a few. Why arresting those dealing in foreign currency yet we cannot access it from banks as you purported when you introduced the bond note and coin.

The government must smell the coffee and dollarise officially if it needs to survive. The companies have already smelt the coffee. It started with pharmacies and privates doctors, followed by chicken inn, now its Delta. The government also was not left behind. It decreed that duty on cars must be paid in foreign currency, fuel by foreign registered vehicles in foreign currency. Yet it claims bond and RTGS are at par with the US dollar. I implore the government to demonities the bond note and RTGS and either dollarise or adopt the Rand if it does not want to raise the anger of the people. Definitely it is preparing a recipe for disaster by clinging on to the bond note. Strikes and picketing would be the order of the day this 2019 if the government does not act responsibly.

It is now or never that the government has to either adopt the Rand or the US dollar officially. This will solve a lot of problems for the government and the people. Remember b our government ais a listening government and our president is a listening president and our voice as the people is the voice of God.

Henry Madiro writes as an independent citizen crying for equality and justice to the general citizenry.

Source - Henry Madiro
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