Zim bond notes seep into Sadc region

The Reserve Bank of Zimbabwe (RBZ) claims it is aware that bond notes are now being sold in Mozambique, Zambia and South Africa and this has contributed to the unyielding cash crisis in the country, a tacit admission of failure, as the central bank always claimed the surrogate currency will only trade hands within Zimbabwe’s borders.

BY TATIRA ZWINOIRA

bond-notes

RBZ deputy governor, Kupukile Mlambo told participants at an international retailers’ indaba hosted by Confederation of Zimbabwe Retailers (CZR) in Harare yesterday that the central bank was surprised to learn from its staffers and bankers that bond notes were being found across the border.

“I am told that bond notes are now used, or you can now find them in Mozambique on the border with Mutare, Victoria Falls on the Zambian side in Livingstone and at Park Station in South Africa. I am not sure, because when we introduced them, they were not able to be externalised,” he said.

“But I suspect that people know that if you are holding a bond note when you come in and buy from a retailer at a one to one rate with the United States dollar, it is good for them to hold those bond notes. We have to establish the amounts that are outside. My guess is that they are not as much as people say they are.

Mlambo’s statements come as cash shortages continue to bite, with the bond note increasingly scarce.

“I have heard bankers say there are a lot of bond notes outside, but we have got to establish how much they are,” he said.

“In general, getting bond notes to South Africa is not illegal because I am allowed to carry $1 000 in cash. Unless the amounts are big, the Zimra guys will not stop you from carrying, so you are allowed to carry that.”

Mlambo said incentives needed to be put in place to ensure that bond notes return to the local market.

This comes as the central bank confirmed a reduction of bond notes in the market, despite having put $140 million worth of the pseudo currency into the market.

The central bank said, on average, a review on the current liquidity balances of banks, showed that between 2% and 3% of bond notes and coins were in financial institutions’ vaults.

Mlambo suggested cross border traders were responsible for taking bond notes across the border, which he bizarrely said were a more “stable” currency compared to the South African rand.

Cross border traders are estimated to be spending $1,15 million daily buying their wares.

Financial expert, Persistence Gwanyanya, said bond notes were being found across borders due to their parity with the United States dollar.

“So, one finds it better to hold a bond note than a rand, for example, because when you hold a bond note to an extent you preserve value. Some institutions use the bond notes to buy locally at an equivalent to the United States dollar, so in a way you have actually preserved value,” he said.

“But, obviously there needs to be deeper research into that issue because it appears to me to not make sense from an economic point of view, as the currency is valueless outside the border and Zimbabweans do not have excess cash.”

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19 Comments

  1. Mangudya has failed.These are the signs and symptoms.He should resign now according to his promise.

  2. Rand is sold in the streets in Zimabwe and we have never heard of cash crisis in South Africa why?. Its not Mangudya who has failed but the central governmant

  3. tendai chaminuka

    Nhai vakomana vepa Samora Machel Tower what kind of economics is it that 300 people are lined up at a bank for $20 withdrawals whereas 10 metres away from the bank a group of money changers are holding $200,000.00 in cash for illegal dealings.Take that money away from the streets so that those providing tax to the government dont have to endure these torrid lines.I apologise for not making sense out of it semugrade seven akamitiswa kudai

    1. Kkkkkkkkkkk I like your last statement. Before I read it I was wondering how on earth you suggested that RBZ take away money from the money changers on the street. By ginya here? But when I read your final sentence all is now clear to me.

  4. Does this Mlambo guy know what he is saying to work ? Why should it not be illegal to carry bond notes outside of Zimbabwe? Inga mutemo weRBZ unoti Bond notes are legal tender only in Zimbabwe. So if one is seen by Zimra crossing into a foreign country with 1000 bond shouldn’t it raise a red flag. Its this kind of thinking by RBZ officials that causes the seeping of bond notes into Other where they are not supposed to be.

  5. resign ka…….resign ka…resign ka…resign ka

  6. murikugona zvikuru. Bond note rairambwa nana mai mujuru rakasimba zvinotyisa, hatina basa nezvekushaika kwaro asipaunoribatirawo richitenga zvinomutsindo. Ma India omu Messina can speak fluent shona vanoźiva vanhu vane mari inoremera Africa yose. Pamberi nekusadzokera sure. Pasi pasi nemadzakutsaku asingadi kutsvaga mari.

    1. so whats your point mdidi wakho?

  7. Takambokutaurirai va Mangudya from the day you introduced bond notes step down.

  8. Its always one excuse after another from the RBZ, we are tired of these failures honestly

  9. They say they want to establish how much of the bond notes were externalized as if they are intelligent enough. Poor leaders.

  10. Hey you big head Magundya now you see it!!Why can’t we adopt the Rand now you stupid fool.You just like your former boss Gono nharo/inkani chete heeeiissshhh Zimbabweans how can we get rid of these donkeys dai kuri Colombia taingo pfura zvieende.

  11. you can complain all you want but the shops are full fuel is there people are buying cars everyday go to messina right now. Kana kuAmerica variko vanongo complainer so it’s not fancy or new

  12. the bottom line is the general public is crafty. the general public also has a clue to end the economic woes give them an ear and let’s see is zim won’t be great afain

  13. gabarinocheka

    Simple logic.Given that the bond note has equivalent purchasing power to the dollar in Zim, both money changers and traders from neighbouring countries would keep the real US dollar for use elsewhere and come to Zim with the former.In any case they get these bond notes at a cheaper rate.RBZ should not have put the two at par.If Mangudya were to wake up tomorrow and peg the bond note at 3/4 of the dollar all the notes on the street and in neighbouring countries will quickly find their way to the bank

  14. Freddy Chipadza

    140 million bond currency was released. Look at the simple maths; There are 15 million population in Zim. If we divide 140 million by 15 million thats 9.33 USD distributed per person.
    If you have more than 10usd, you are doing well for whats available per person.

  15. soko pamahererero

    kkkkk wagona gaba

  16. hakuna bond riri kutengeswa kunze bond riri mustreet ,kutsvagisa marands kana uchida us dollar unoritenga nema bond nemari iri pamusoro.Ita haricha shande in 8 hours rinenge razara mumabank futi.

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