PEOPLE across the country should embrace bond notes, as they have been already introduced into the market, Alpha Media Holdings (AMH) managing director, Vincent Kahiya said yesterday.
BY MTHANDAZO NYONI
Giving his remarks at a Bond Notes Lecture Series in Bulawayo yesterday, Kahiya said bond notes were now a reality and they should be accepted.
“The question of whether we want bond notes or not will not help us in anyway now because they are already in the market,” he said.
“The question we should be asking ourselves is: Then what after the introduction of bond notes? This is because you will be using them even if you want them or not.”
The Reserve Bank of Zimbabwe (RBZ) ended speculation on introduction of the notes, which were rolled out onto the market yesterday.
Bond notes, which were introduced in $2 and $5 denominations, are fixed at a rate of 1:1 with the United States dollar.
Kahiya urged academic institutions to take a lead on the country’s economic policies.
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Keynote speaker, Nqobizitha Dube, said there was need for more publicity and public consultations before the central bank introduced bond notes.
“There was lack of clarity on the credit facility. I think there was need for African Export Import Bank to come out in the open about the facility,” he said.
Dube, a lecturer at the National University of Science and Technology (Nust), said the apex bank lost public trust and confidence following the 2008 era, which saw people losing all their savings.
He said, theoretically, it was impossible for bond notes to improve the liquidity situation, as the country was heavily dependent on exports.
Dube lamented that a number of people now were keen on seeing a thriving black market and many would not bank their money.
But during the question-and-answer session, bond notes received an overwhelming thumbs down.
Participants told central bank officials that the government wanted to steal their savings from banks like it did in 2008 during the hyper-inflation period.
“Firstly, we were not given enough time to discuss the bond notes decision. If my bank will give me bond notes, I will simply go and drop them off at RBZ offices and ask for my US dollar,” one participant said.
“This is the greatest fraud of them all. We don’t want them.”
A participant questioned why bond notes, said to be an export incentive, were being given to non-exporters.
Another raised concern that the Reserve Bank of Zimbabwe (RBZ) would raid their foreign currency accounts, like it did in 2008.
Participants also feared the government was introducing bond notes as a way of funding their campaign for the forthcoming 2018 elections.
RBZ officials tried to allay people’s fears with no luck.
“We don’t trust the system. You have to invest in methodologies that will make us trust you. The social contract is seriously broken,” Dube said.
The public lecture was held in conjunction with AMH, Nust and RBZ.
AMH publishes NewsDay, The Standard and the Zimbabwe Independent.
