RBZ issues more bond notes

The Reserve Bank of Zimbabwe (RBZ) has issued $43,9 million worth of bond notes, bringing the total to $72,9 million as at December 31, as the central bank forges ahead with the scheme to incentivise exporters.

BY BUSINESS REPORTER

As at December 16, the RBZ had issued bond notes worth $29 million. The bond notes were introduced into the market on November 28 under the $200 million export incentive facility guaranteed by the African Export-Import Bank to boost exports and generate more foreign currency for the economy.

However, the total amount of bond notes is below the $75 million projected to be issued by the end of 2016. At the rate at which the bond notes are being issued, the $200 million envelope would be exhausted by the end of the year.

In a statement yesterday, RBZ governor, John Mangudya said the bank had paid the export incentive to 80% of exporters of “goods and services including Diaspora remittances through the issuance of bond notes in the sum of $72,9 million”.

He said the major beneficiaries of the scheme were tobacco growers ($29,4 million), gold producers ($10 million) and Diaspora remittances ($5,4 million).

Mangudya said a number of firms that had ceased exporting due to the uncompetitive domestic economic environment, which included high cost of production and a strong United States dollar, have started to export as a result of the incentive.

“Productivity, which is the panacea to the current economic challenges bedevilling the nation, is gradually increasing. This includes the expansion of the tobacco crop grown this agricultural season and the reduction in the smuggling of gold, as the 5% incentive awarded to gold producers over and above the international gold price has been regulative to discourage smuggling,” he said.

Mangudya said the export incentive scheme came when the global economy, and Zimbabwe, in particular, were facing turbulent times.

“A sudden collapse in the prices of export commodities of interest to Africa, including Zimbabwe, and the appreciation of the United States dollar transmitted serious negative economic shocks to the national economy that required the bank’s attention,” he said.

The introduction of bond notes and the aggressive use of plastic money has helped to reduce the demand for cash, which created queues at banks. The bank notes, which are at par to the dollar, had faced resistance before their issuance, as people equated the introduction of the surrogate currency to the return of the local currency, which was decommissioned last year. The Zimbabwean dollar was rendered worthless by hyperinflation and subsequently replaced by a multi-currency regime in 2009, which now has nine currencies, including the dollar, in the basket.

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11 Comments

  1. tendai chaminuka

    Mangudya and team now deserve Professorship.Action speaks louder than words.Ndohunonzi huzvinafundo.They managed to dribble past the zanu p.f mafias who were awaiting for an opportunity to abuse the bond notes.At least they dont waste their time writing a thesis about a cup

    1. too early to comment. Let the dust settle

  2. Thanks Tendai for appreciating the good work being done by JP Mangundya and team at the Gold Tower for the good of our beautiful country. I don’t remember the number of times I warned the doubting Thomases that bond notes are not the same as the bearer cheque. Whereas the bearer cheque was printed on demand the bond printing follows a discernible trail of transactions, thereby making it umimmitable. As a matter of interest where do the anti bond demonstrators stand at this moment. Kkkkkkkkk to those misguided diasporans including the so called Pastor Mawarire who always wished Zimbabwe ill luck.

    1. @Bond Note … you are shallow, its too early to comment as you have done. Just give it 6 months and come back to comment! Note that noone wished or wishes ill for Zimbabwe….but you see in life certain parttens will result in certain end points and plpe just said it as it is. The USD is slowly vacating the market and the bond note is slowly driving away good money. The international TTs are not being honoured. ZFC has no stock of fertiliser as we speak right now becoz the RBZ failed to honour their TT request to bring in product. ZESA is only getting 5 million a week instead of 20 million to import electricity. Bread makers have no wheat. SOON there will be massive shortages.

      Remember our problems last time did not manifest over night …rather there were slow right from 2000 until the situation burst in 2008

  3. Everyone knows zanupf is just waiting for elections to approach then all this textbook economic common sense will be thrown out the window as they start mass printing of bond notes to buy votes then the bond notes will fall to their true toilet tissue paper value. We have dealt with these monsters before, we know their true colours & how they operate.

  4. but we are seeing the usd disapearing. he should balance the injection of bond notes and usd as it is becouse in the later day they will try and fix another problem

  5. RBZ PUBLICITY IS MISLEADING .WHY BOND NOTES IN ATMs.YET YOU TOLD US THAT BOND NOTES WILL ISSUED ON YOUR REQEUST.JP MANGUDYA CAN CLARIFY TO THE INNOCENT CITIZENS

  6. Ummm mirai tione kuchawira svimbo nedohwe

  7. It is too early to comment on this. Currently the notes are being released based on the 200mil… What if this is exhausted? who will stop its printing?? The Bearer Cheques were first printed based on gold reserves and other economic expectations but they ended up being printed as per instruction…. Watch this space…..

    1. Thus true , it’s too early to comment and be boastful about it. we have walked this road before. It’s every Zimbabwean’s wish for this to working. Our generation the future is now in our hands come 2018. lets all register and vote to define our children’s destiny once and for all.

  8. “… as the central bank forges ahead with the scheme to incentivise exporters.

    BY BUSINESS REPORTER”

    Could it be that Business Reporter is also getting an ‘incentive’ for such lies …..!
    ‘Export Incentive … my foot!

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