Demonetise bond notes: Biti

PEOPLE’s Democratic Party leader, Tendai Biti yesterday called on the government to immediately demonetise bond notes and increase the use of plastic money, as a temporary measure to deal with the liquidity crunch and multiple-exchange rates now prevalent on the market.

BY PAIDAMOYO MUZULU

Biti made the comments while giving his party’s state of the economy address in Harare.

“It is our respectful contention that the government must immediately demonetise the bond note. We contend that the myth of RTGS and use of plastic money can be adequate to resolve the challenges of cash as a medium of exchange within the four corners of Zimbabwe,” he said.

Biti said the government should quickly move in to ring-fence all United States dollar-denominated account balances to hedge against wiping away depositors’ savings like what happened in the 2007-8 hyperinflationary era.

“We demand that all current balances in the people’s bank accounts, which are indexed in US dollars and not bond notes, must be ring-fenced immediately, to protect the same against the vagaries of the returning high inflation and multiple exchange rates,” he said.

The former Finance minister also called on the government to do a forensic audit of the State’s debts since 2013, when his successor, Patrick Chinamasa increased government debts through the issuance of Treasury Bills.

“Such audit should also ensure that all debt that was contracted, including and in particular the debt acquired from Afrexim Bank, complied with Zimbabwean law and in particular approved by Parliament.”

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25 Comments

  1. Audit on what, audit on WHO. Zvimwe zvinhu hazvishande muZimbabwe.

  2. Nhai vaBiti explain to me how I will buy matamati mustreet or pay vamagaisa kumusha

      1. Kooo Kombi????

    1. Zvino bhadharika kana zvika tsigirwa nehurumende, plastic money iri kushanda kwese. Zvinongoda hurumende iyite campaign yekufundisa wanamagaisa kuti zvinoshanda sezvavakamboita gore riya vachiwunza ma Bond. Kana nguva yavaGono iya payichinjwa currency kunge ma socks, teams were being deployed to the rural areas kundo dzidzisa wanhu. Zvinogoneka izvi, panogoda wanhu kuti wawirirane kuti Zimbabwe ngeyedu, uye ngayiwakwe nemunhu wese, kwete kuite mapolicy andogadzira vana Lazaro wazhinji nana Gono washoma.

    2. Shoma US$ riripipo rinotenga matapi the rest of the transactions oita ecocash swipe and transfer. Kungoti ma Zimbo madofo you don’t understand what is happening and you claim kuti makadzidza. You mean you don’t see the chaotic situation prevailing in the market. US$ has disappeared meaning all your money is bond notes and the bond is losing value hence the 3 tier pricing system.

  3. Biti is right kungoti vamwe vedu munomhanya kutuka chete, but pauchafuma US dollar account yako yave worth nothing like in 2008 you will see kuti Biti was right.dont you see where we are going guys, do you think Zanu cares about you.Buy tomatoes using Ecocash and pay magaisa using ecocash but when it comes to ring fencing our savings I think Biti is very correct coz mbavha idzi todziziva.

    1. Zvenyu mune something to ‘ring-fence.’

  4. With a perfect implementation, demonetisation policy can provide a great boost to any country’s economy.A well-planned demonetisation system can prove beneficial for any economy. However, in case of mishandled support, this may also cause problems. Hence, a public support must be sought for the overall success of this policy.

  5. Zethembe Ngobese

    Unozviudza aniwacho izvozvo, nhai Tendai?

  6. The truth is we are failing to generate enough foreign currency. Whether we adopt Euro, rand, $US or whatever currency, it won’t fall from the sky. So just regurgitating textbook catch phrases will not solve our problems. The majority of African countries are surviving through donor support which we are not getting because of our politics. So thinking that abandoning the bond will suddenly result in a flood of $US is just dreaming or mere political posturing.

    1. MaDube, do you have any idea on things you are talking about? yes as a country we aren’t producing enough to earn foreign currency that much is obvious, but bond notes are only exacerbating the situation and fueling inflation and the black market. They are not sustainable and resorting to the USD even if it’s in short supply might force our reckless government to have a bit of fiscal discipline because you can never print the USD to fund reckless spending. You complain about textbook Economics, well textbook economics is something that been proven time and again that it works and stupid economic experiments done by the government have caused this country to collapse and even lead it to scrap its own currency.

  7. Nhai vaBwe mofunga bond rotisvitsa kupi all the problems dzatavenadzo ibond haraitombofanira kubuda

  8. bond ngariende

  9. Well said Biti has facts since he was the former finance minister people have rejected bond notes from the word go???????

  10. Tahanks Biti we do not require BOND NOTES. Multi currency worked very well during your time as Finance Minister.

  11. I am sure we can still push for the increase in the use of plastic money without necessarily demonitising bond notes. Pamwe zvimwe zvinotoda cash chete especially for kids who do not have ecocash and bank cards!

  12. Biti is right.He is supposed to be the Governor or Minister of finance not stupid idiots who think the know.Look what biti did when he was the minister of finance it wasd great,just like Nelson chamisa when he was the minister of ICT they implemented toungable things not these stupid guyz

  13. (M)Biti a poor politician and the worst Minister of Finance, who ran a Treasury with a paltry US$219.00

    The truth of the matter is that due to lack of wisdom on the part of Biti and his counterparts in the opposition political parties, Mdcs in particular and Tsvangirai in general this grouping actual invited satanic,deleterious,ruinous, racist economic sanctions against our Motherland. The Zidera act specifically denies us balance of payment support and credit lines.

    This is the albatross on our economic neck which Biti and like minded must tackle, if , indeed they are patriotic.

    1. Enough is Enough!!!

      Huuuuuuu nhai makadzidza kuborder Gezi here… any country can self sustain itself by having good policies that are not self centred but those that recognises and promotes regional and international relationship ….Iyo Zidera yaunongotaura nezvayo ndiyo yatitadzisa kurima here. Ingawani Ivhu racho raredu…bro we are not producing, period! yo policies as ZANU PF being spearheaded by you and yo collegues have denied us BOP iye akakuudzai kuti kugona kutaura chirungu ndokufunda ndianiko…Biti has done great in his era as the Minister of Finance …ko vako va Chinamasa vakaitei . Jus imagine kuti u can manage to do govnt payments ne$219.00 in a pocket. If we giv you that even kumba kwako can you manage it. ViVa Biti..thats why mudhara Bob aimuda mu Cabinet.

    2. BITI is by far the best finance minister in Africa. Mukarwadziwa naye hamupore

    3. ..ivhukuvanhu my friend listen to what you are saying and do a self introspection. Biti was very clear with the situation then and declared the “we eat what we kill policy” in contrast China masa has been busy digging holes/makomba printing money through issuance of Treasury Bills/Bonds (TBs). Literally eating what is not there period. These TBs must be thoroughly audited.
      Credit Biti for coming up with the debt resolution/re-engagement thrust which was later on abused by people who didn’t quite understand it. Colleagues let this be understood if you dont repay chikwereti forget about accessing any lines of credit and that’s what we did….this being an economic sanction which until we sit and re-engage with our creditors we are doomed. And only Britain is going to be bring us out of this the debt trap. resolution.

  14. Biti in 2011 grew the economy by 11%. That was the fastest growth rate not only in Africa but in the World at that time. And you say he doesn’t know what he’s doing? vamwe vanhu don’t make fools out of yourselves.

    1. Wheather T.Biti is wright/wrong nothing will change in Zim till we look to God and do what He pleases. 2chr 7:14

  15. GUYS!WEATHER BITI IS RIGHT OR WRONG NOTHING WILL CHANGE IN ZIM TIL WE FORSAKE ALL OUR WRONG DOINGS AND RETURN BACK TO GOD….2chr 7:14..

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