EMPLOYERS yesterday took the Reserve Bank of Zimbabwe (RBZ) to task over the introduction of bond notes, saying the move was ill-advised and there were no consultations.
BY KUDZAI KUWAZA
During an emotionally-charged meeting at the Employers’ Confederation of Zimbabwe (Emcoz) congress in Victoria Falls, employers grilled RBZ director of economic research, Simon Nyarota over the surrogate currency, saying that no consultations were done.
“Trust in the Reserve Bank is not transacted over the counter, but it is earned,” an employer told Nyarota.
“Your previous boss [former RBZ governor, Gideon Gono] destroyed our lives.”
Gono has in the past said the introduction of bearer cheques and printing money were designed to deal with an extraordinary situation, which confronted the economy at the time.
Nyarota’s remarks that the use of bond notes was going to be optional found no takers.
When he pointed out that there would be one account for both US dollars and bond notes, one employer interjected, querying: “Is that clever?”
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Emcoz executive director, John Mufukare said the central bank had not consulted adequately before moving to introduce the bond notes.
“If you consulted, then the consultation was not wide enough,” he said.
“Looking at the background of where we are coming from [of high inflation caused by printing of money in 2008], it looks like you are intimidating us into trusting you.”
Mufukare expressed concern over the government’s “tradition and norm” of spending more than the revenue it receives.
“The elephant in the room is the overspending by government.”
Employers pointed out that the structural problems that led to the collapse of the economy had not been addressed, a point Nyarota conceded.
Nyarota said the introduction of bond notes would not eradicate the cash shortages in the country, but reduce the illicit outflow of money from the country.
Early this year, RBZ governor, John Mangudya said individuals and companies had externalised $1,8 billion in 2015, worsening the liquidity situation. The introduction of bond notes is one of the measures to stem capital outflow alongside the restriction of imports with RBZ coming up with a priority list for the efficient use of the foreign currency.
RBZ is set to introduce bond notes by the end of the month under a $200 million export incentive facility guaranteed by the African Export-Import Bank meant to boost exports and generate more liquidity for the economy.
