What has stopped Mangudya from resigning?

On Tuesday, we carried a report that Zimbabwe’s surrogate currency – the bond note – has lost half its value by more than 50% on the illegal market.

This is a worrying trend given signs of economic stress are already showing with fuel queues starting to form everywhere.
How this continues to happen under the watch of monetary authorities is mind-boggling.

Our major problem is that the leadership is only focused on amassing power and wealth at the expense of the majority.

While we appreciate that central bank governor, John Mangudya is operating in a difficult situation, where any move to stabilise the economy could be viewed differently in the context of Zanu PF factionalism, it is important that he puts measures to protect the public.

It is regrettable that our leadership forgets. They must be warned the subjugated do not easily forget because they are the ones facing the brunt of the poorly performing economy and poor governance.

The citizenry had hoped that Mangudya would resign immediately after the bond notes failed as he indicated at the launch of the surrogate currency. We still wonder what has stopped Mangudya from resigning.

Indeed, power is sweet, and for the record, quitting as a result of poor service delivery has never been part of Zanu PF’s service delivery charter. We knew all along that Mangudya was either fooling himself or thought he was hoodwinking the public.
Mangudya can save himself the shame by coming up with measures to shore up the economy.

This, hoping, he will not get the usual resistance from among his Zanu PF handlers.

If it was easy to quit, President Robert Mugabe would have left a decade ago for the good of the country.

Yet, he even attacked former minister, Nkosana Moyo that he was cowardly for choosing to leave after his frustration over poor service delivery.

We urge Mangudya to deal with economic fundamentals to stabilise the economy.

There is no doubt that a vibrant, stable sector is a backbone of a stable macro economy and this is key to creating a conducive environment for industry and commerce.

According to research firm, IH Securities, the high demand for foreign currency required to effect payments for goods and services sourced externally is what has contributed to the bond note depreciation.

In fact, our hard currency stock has seen on a decline due to lack of foreign investment and sluggish growth in exports. It is absurd companies and retailers have been forced to turn to the parallel market to source cash to expedite foreign payments to suppliers.

What with threats by foreign suppliers to pull the plug on local firms due to delays in making payments. Still some suppliers have threatened to cancel credit terms for local businesses.

We believe promoting economic stability is a matter of avoiding economic and financial crises, large swings in economic activity, high inflation, and excessive volatility in foreign exchange and financial markets.

It is disturbing that instability continues to increase uncertainty, discourage investment, impede economic growth, and hurt our living standards.

The other challenge is our policymakers are neck-dip in Mugabe’s succession fights. There are also power struggles in the opposition camp.

Our contention is it is their job to improve our living standards through rising productivity, employment, and sustainable growth, otherwise everybody should be sent packing come the 2018 polls.

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23 Comments

  1. mgobhozi wezintabeni

    There is nothing that the Governor can do under the current hostile political environment.Even the Central Bank Chief Executives of highly developed economies are brought would simply fail.Imagine a governor being told by a politician not to use bookish economics,how does one work in such a non supportive political environment by the country’s policy makers.

    1. Z$ — GONO–ISM AGAIN !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  2. Bullshit, no excuses, if there’s nothing that the Governor can do even under the current environment then why must we have a governor at all in office? What is he being paid for then? Better for him to resign & we try someone else until we find a competent one

  3. This report is a total Big Lie. The bond has not lost any value and if you change money every other day by now you would know that its only cashing eco-cash and transfers were the rates have gone bonkas but bond to usd has remained almost at par with a difference of just a mere 2 points.

    1. Unfortunately, you got blinkers on yours face, and i cannot even try to wake you up.

      1. I am not sure if you know the Bond we are talking about, just go right now to Road Port, Meilkles Hotel road side and any other place ,the rates of USD to Bond are there to see for everyone so not sure if there is need for any arguements on something which is as clear as daylight.
        I did these transactions on Monday and yesterday and again i repeat all money traders rates are the same and the difference is about two to three points.
        Wake up unless you are living outside Zim !.

        1. Unfortunately what you are not getting is where do we get the bond notes to buy USD at close to 1:1 as you say. Employed in the formal sector bank gives us $20 per day ( and I can not go to the bank everyday). That has been reduced to $15 of which they are 10 cent coins which will not buy you any USD currency. I havent taken into account the money I spend to go to the bank, i.e fuel kids bus fare etc. It will take me 7 days going to the bank without spending anything for me to get/ buy 100 USD which is not possible. I end up buying the bond notes for a premium which is between 20% and 30 % using a transfer and then buying the USD. Noone is dishing out bond notes for free.It is clear as daylight that you do not grasp simple economics but you are just an observer who sees a bond to USD transaction but do not know where it emanates from

    2. some pipo reason like chinotimba how can you celebrate bond note

      1. This reasoning is not making sense at all one wonders why you would want to buy Bond notes to buy USD. If you have your Bond even if its 20Bond you can convert it to usd and get usd19.50. In essence what this means is that the bond to usd value has remained almost unchanged. This long and winding story of transport and what have you is all irrelevant.
        I regularly participate in this scheme and i know what is happening daily and again its the conversions of the ecocash and transfers into cash were money traders are making a killing not on naked currency ,no no there is very little profit there.

        1. Kuzwisisa kunenge kunokunetsawo iwe. On top of that you are lying.

          1. Bond Note to USD rate is between 10% and 15%.
          2. Transfer to Bond Note 20% to 25%.
          3. Transfer to USD 30% to 36%.

          On top of this Bond racho kuBank hakuna. Ukaiwana kubank its $15/$20 in 50c coins and below.

          You said, “I regularly participate in this scheme and i know what is happening daily and again its the conversions of the ecocash and transfers into cash were money traders are making a killing not on naked currency ,no no there is very little profit there.” So 10-15% ndoyaurikuti little money are sure or you are out of your senses. Wake up make.

  4. Mangudya’s resignation will not solve anything. We have only ONE source of problems in zimbabwe and it is zanupf.

  5. The bond note is the Zim dollar. It was bound to fail. It was only a statutory instrument backed bond paper.

    1. Yes! At last someone who’s got it!

  6. The most honourable thing to do would be for Mangudya to resign and live up to his words. Right from the beginning he was warned that the Bond Notes would bring economic problems but he simply decided to ignore the mere facts that even uneducated granny can interpret these simple economic facts. Mangugya should simply resign .Period.

    1. TRUE….MANDUDYA MUST RESIGN…IT WAS WRITTEN ALL OVER THE WHOLE THAT ONCE WE INTRODUCE BAD MONEY, THE GOOD MONEY WAS GOING TO BE PUSHED OUT OF THE ECONOMY. WE SIMPLY SHOULD HAVE KEPT THE MULTI-CURRENCY SYSTEMS WITHOUT THE BOND NOTES AND ONLY RATHER INTRODUCE A NEW REAL CURRENCY NOT BONDS AFTER ELECTIONS OF 2018. WE SHOULD HAVE TRIED TO AVERT THE SHORTAGE OF MONEY SUPPLY UNDER THE MULTI-CURRENCY BY VIGOROUSLY ENCOURAGING THE USE OF CREDIT CARDS, MASTER-CARDS, ZIMSWITCH, ECO-CASH, ONE WALLET, NET-CASH, TELE-CASH ETC TO REDUCE THE PRESSURE ON HARD CURRENCY BUT BUILD ON PLASTIC MONEY. THE ENERGY WE SAW TOWARDS MARKETING THE BOND NOTES WAS SUPPOSE TO HAVE BEEN TOWARDS PROMOTING PLASTICS MONEY.

  7. @Eliasha when we speak of the rate of the bond to the USD we not only talk of the exchanging $1 bond to $1USD on the street in paper money, we put into consideration all ways of changing the money from ecocash to transfers. For example the larger companies that need to buy raw materials outside the country will have to source USD via transfer because all of their money is in the banking system. So for to say this article is lying you definitely do not know the fundamentals of foreign exchange. I own a business that is based largely on imports and this is how far the rates have gone. Just a little education for you.

    1. I hope abatsirika with the simple explanation you gave. Its exactly what is obtaining on the ground. I personally went to the Road Port to check just recently. US$ is awash in the street right now using Bank Transfer.

      Ichhhoooo !!!!
      Charira muZimbabwe We pray to Jehovah Of the Universe for salvation

  8. Mangudya can simply not resign. That doesn’t happen in Zimbabwe otherwise Mugabe would have resigned 20 years ago.

    1. DON’T ASK HIM TO RESIGN — HE HAS DEMENTURE — 0NLY 1500US$ SPENDING MONEY EACH FOR HIS 70
      PEOPLE ON BOARD — THIS IS WHERE THE 15BIL US$ WENT TO FROM THE DIAMONDS — OOOOOH

  9. Shouting Magundya should resign will not even solve part of the problem infact it will divert our attention from major issues. We all know the chief culprit of our problems, the one who flies out to an Oceans summit with an entourage of 70 people living on an allowance of $1500/day right upto the grandson.

  10. Resigning is the most honourable thing to do right now BUT I don’t see him going anywhere. He will sink with his bond note. Look at his predecessor Gideon, he presided over a dead economy and never gave a hoot about “bookish” economics. The next exercise for Mangundya will be removing Zeroes on bond notes. Zimbos never learn!!

  11. Mudhara wechikwadi

    Mangundya must resign Mangundya must resign why are you leaving the elephant in the room (MUGABE)

  12. The economists told them before they launched bond note that it will not work it only works in zanu pf dreams we knew it will not work you do not need a doctorate to run an economy this is rubbish. These guys are just thieves now they are taking 15m usd out of the country to go and squander with their families is this not externalization why did thy not go with bond note on the other side they say pasi ne america bullshit only those stupid fools who gather at their rallies clapping hands when that prostitute oozes her diarhea at rallies. We are asick of this sharing a country with fools who are blinkered. Selfish people who dont want to see the whole country progressing chero mukaba a human life is just a drop in the ocean this country will be there for thousands of years after you are gone and you will be known for bad things like Hitler and stalin. zvose zvinotogwa you are wasting time

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