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RBZ: "Bond Notes Never Failed, They Served Their Purpose"

RBZ:

The Reserve Bank of Zimbabwe (RBZ) has maintained that bond notes never failed, instead arguing that the scheme served its purpose of promoting exports.

Upon the introduction of the notes back in 2016, the central bank governor, John Mangudya vowed to leave office in the event that the notes failed.

Years later, sections of society continue to question why the governor is still in office as they largely believe that the bond notes failed.

But responding to similar sentiments before the Budget and Finance parliamentary portfolio committee Monday, Mangudya maintained that the bond notes were a success. NewZimbabwe.com quotes him as saying:

I do not believe that bond notes failed. In fact, nobody has come to me with evidence showing that bond notes failed.

You will recall that their sole purpose was to serve as export incentives. During that time, this economy indeed managed to increase exports.

I can give you the number of companies which did so. It was based on 1:1 exchange rate and we expected companies to increase their exports.

Did inflation go up during the bond notes era? No. Even the interbank did not fall. The 1:1 rate did not change. The change to these patterns were a result of decisions made by the business community.

In January 2018, business organised an indaba at the Rainbow Tourism Group where they said the government should now float the currency.

That was the decision from the business community not the government of Zimbabwe. The government did exactly what the business community had asked for because there was now more virtual currency in the system.

Mangudya blamed decisions made by the Government of National Unity (GNU) saying they are the root causes of current economic challenges. He maintained:

This economy has no capacity to fully dollarize.

It is not Mangudya who legislated the fixed 1:1 exchange rate. It was by a statute passed in April 2009. When we dollarised, the country had no foreign currency.

It was by faith, not by sight. We then abandoned our currency and we laid our own currency to rest six feet under. That was a mistake made by Zimbabweans.

He said the prudent step to take then was to leave the local currency limping through with the hard currency as opposed to total abandonment, citing examples that such practices have been upheld in Zambia, Mozambique and the Democratic Republic of Congo.

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14 Comments

??? 1ย month ago

Ewo tazwa, asi kumbopawo vamwe mukana.


1ย month ago


๐Ÿ’ฐ 1ย month ago

hmmmmm it's like seeing muddy water and you be ignorant and say it's not muddy water this water is clean๐Ÿค”๐Ÿค”๐Ÿค”


Bond notes never failed 1ย month ago

The people said it would fail and they failed.
This blame game will get us nowhere.
$100-00 Zim dollar that cannot even buy a quarter loaf ๐Ÿž.
When is the $1000-00 Zim dollar note coming out. That won't buy a loaf of bread ๐Ÿž either by the time its printed.


Mr Xx 1ย month ago

Yes Bond notes didn't failed it's purpose of looting Zimbabweans their USDOLLARS . Everyone is now crying from all corner of Zimbabwe all our money was robbed by to this government


Jerk 1ย month ago

John Mangudya as a teacher:
"Mwana wenyu haasi **** asi kungoti anononoka kubata okurumidza kukanganwa"
* As salesman:
"...hatina kukwidza mutengo wehupfu asi tangoderedza huwandu"
*.....as Warriors couch:
"..hatina kudyiwa asi kungoti nguva yakwana tisati tanwisa"
*....as a kid who just fell on top of cow dung with his face:
"......ndiri nane pane abata๐Ÿคค"


munhu wacho 1ย month ago

AAh wapaburitsa

ndokubvuma muchihwande kaa kkkkk

Crankshaft 1ย month ago

Well articulated

abc 1ย month ago

kkk wapedza zvako iwe

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dispenser 1ย month ago

deno baba Ava vasiyana ne zvenyika vaenda kumusha kuita mudhumeni.kuverenga madonkey ne mombe


WILLIAM SONBOY CHINEMBIRI 1ย month ago

Who is fooling who here, RBZ Governor John Mangudya and Finance Minister Professor Mthuli Ncube on one side and all citizens on the other side.

The bond currency was 1:1 with us$, but today it is rtgs 398:1us$. I am not an economist like the Governor and the Minister of Finance Mthuli Ncube !!!!!

At the time they were introduced, bond served their purpose, but now they no longer serve their purpose.

I know that our Reserve Bank Governor, John Mangudya and our Finance Minister, Mthuli Ncube are economists of repute, but they seem like they now need to attend refresher courses !!!!!

VA MANGUDYA NAVA NCUBE, ENDAI KUZVIDZIDZO ZVEKUVANDUDZA PFUNGWA DZENYU.

APA PAVA KUTODA VA CHAMISA APA.

[VOTE CCC FOR REAL CHANGE]

Yours faithfully
William Sonboy CHINEMBIRI
[THE ORIGINAL BUSH LAWYER]


Kays 4ย weeks ago

Zvekupenga izvo



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