No exports, no more bond notes: Chinamasa

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Finance minister Patrick Chinamasa

FINANCE minister Patrick Chinamasa last week said no additional bond notes would be released into the market to ease the cash crunch, saying the only solution lay in increasing exports.

by VENERANDA LANGA

Finance minister Patrick Chinamasa
Finance minister Patrick Chinamasa

Chinamasa made the remarks in Parliament after legislators pleaded with Treasury to release the entire $200 million support secured from Afreximbank to hedge the bond notes.

“I do not support that we should issue all the bond notes up to $200 million into the market,” he said.

“We made it very clear that the bond notes are only issued relative to exports – no exports, no bond notes in the market, and we are going to stick by that because they are coming in as an incentive to exports,” he said.

Mutasa Central MP Trevor Saruwaka (MDC-T) claimed people in the Diaspora were now discouraged from sending remittances because instead of giving out the 5% incentive, financial institutions were paying 3%, resulting in people being defrauded of $2 from every $100 deposited by Zimbabweans in the Diaspora.

Chinamasa said the issue raised by Saruwaka would be looked into and investigated.

Marondera Central MP Lawrence Katsiru (Zanu PF) also claimed brand new notes were being traded at Roadport by money dealers saying Chinamasa must look into the issue, which had contributed to shortages of money at the country’s banks.

“The issue is going to be investigated. What I know is that any bond notes issued are issued to commercial banks and not to individuals. What could be happening is that some people are issued with brand new bond notes when they withdraw at banks, and these will end up at Roadport in exchange for United States dollars,” Chinamasa said.

The country has been experiencing serious cash shortages, with long bank queues having resurfaced.

Chinamasa urged everyone in business to use point-of-sale machines and Zimbabweans to increase usage of plastic money.

9 COMMENTS

  1. The Governor is merely trying to treat a symptom and failing to treat the real cause of the cash crisis. Thanks to the banks, we managed to chase away transactions from going through the bank because of high bank charges as consumers and traders prefer to trade in cash. All the bond notes that have been released so far will not go back to the bank but are being used to mop up the remaining USD.

    The reason why USD shuns our economy and tends to leave is because investors have lost confidence in the economy and most believe Zim is a hopeless case. Between 2009-2013 our economy had a positive growth rate , such that investors were attracted to the economy. But from mid 2013 going forward we started butchering our economy, first with the now defunct indigenous law and then many other policy inconsistencies. That is when people started taking their USD to other countries. We need to learn from our neighbors like Zambia, who have more USD than Zim but have managed to maintain or grow their USD stock without any problem.

  2. Chinamasa and Mangudya are dunder heads. they think using their buttocks. you cant rig elections and the economy at the same time hazvigoni. dont worry we will deal with you in 2018 toda kuzviona.

  3. Our small exports must be complimented by reduced imports. Yesterday we were told of vehicle purchases worth $500k by one organisation. The other day it was a facility for cross border traders worth millions. There’s a hole in the bucket dear Patrick.

  4. one would not like to deposit any cash into the bank. With drawing cash is now a nightmare. Some people who do not own bank accounts are putting at the bank in order to collect numbers that they sell to people with accounts in the bank.

  5. They are not addressing the real issue at hand we need production and that can not happen as long as ZANU pf is still in power and implimenting the wrong economic policies ,otherwise by the end of 2018 we will be back to the 2008 era because 1- the queues have started 2- shortage of cash 3- inflation on the rise 4- black markets are in business 5- cash hoarding already in place if I were any business man I would trade carefully …..

  6. I disagree with MP Saruwaka on saying Diasporas are being defrauded $2 from every $100. This is money just being given to you simply because you received money through the formal channel to solve your problems, all along people just received the amount sent with no additional funds on top. Financial institutions are using additional labour and stationery to help RBZ distribute bond notes. Raising an issue on this will result in scraping off the 3% and get to the normal way things used to be, which has noise..

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