The Sunday Mail
On May 4, 2016, Reserve Bank of Zimbabwe Governor Dr John Mangudya announced introduction of bond notes backed by a US$200 million Africa Export-Import Bank facility. The Sunday Mail’s Livingstone Marufu spoke to vendors Mr Charles Musekiwa and Mrs Victoria Muzeketwa in Harare’s CBD to get their laypersons’ perspectives on the coming dispensation.
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Mrs Victoria Muzeketwa
Mrs Victoria Muzeketwa
The Reserve Bank of Zimbabwe should embark on educational campaigns to make the general public understand how bond notes work and what authorities want to achieve.
Generally, some people don’t want them as no one has officially explained the difference between them and bearer cheques.
If they are at par with the Unites States dollar, then they can be useful in terms of circulating across the country.
They could also open up markets and increase liquidity, enabling business to thrive.
Before the cash shortages, I used to make US$300 or more daily. The first food batches would have been sold out by midday as business was brisk. But the cash shortages have changed the story.
People want to save every dollar.
I humbly submit that Government should introduce effective measures to keep strong currencies like the US dollar in our market.
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Mr Charles Musekiwa
Mr Charles Musekiwa
As a businessperson, I don’t like bond notes as I won’t be able to restock. I, for one, fear their value could be eroded by high inflation – just like bearer cheques.
Memories of 2008 are still fresh in the minds of many, therefore, we do not want a repeat of that era.
If cash barons continue to hold on to the US dollar, Government might be forced to print more money, more bond notes to deal with cash shortages.
A vendor like me fears the return of the Zimbabwe dollar under such circumstances.
Of course, I would have no choice, but to accept if bond notes were introduced.
However, one should tread cautiously, analysing the market and using bond notes more so as not to exhaust his/her US dollars.
Don’t blame me, we don’t know how strong these notes will be!
The arrangement is very different from the bond coins that we accepted to ease small change problems. But who knows? Larger denominations could trigger something adverse.
On the hand, bond notes could actually open things up if backed by the US dollar and if the two have equal value.
Government should get tough with big companies, wholesalers that mop up cash daily, but do not bank it.
Such businesses should be tracked and compelled to deposit money in banks as I believe they have a lot of it.
Zimbabwe should import goods only where necessary, giving local industry room to produce goods like sugar, fertiliser and cooking oil.
This will ensure our foreign currency is not taken to other countries cheaply.
In fact, authorities should ban goods that are available in sufficient quantities here.
They should not just tell news reporters about that ban, but implement it fully. I know what I am talking about: Some “banned” goods are still making their way into Zimbabwe!
You rarely find locally-produced products in certain chain stores, and that is part of the reason why we are losing our cash to other countries.
We should balance exports and imports; let’s export more than we are importing.
Zimbabwe should also introduce tough anti-money laundering laws that deal with unbanked companies and individuals with huge sums in their safes.
