#MondayBlues: RBZ Must Think We are All Fools On Bond Notes

The media has a responsibility to report  responsively  and positively not create unnecessary panic and cause alarm and despondency, so just in case you may think I’m ignorant of the cardinal rules, i bet i could spell them better with deep honesty.

While we have a mandate  to inform and educate the nation, we are also equally responsible for telling the truth as is lest we judged and be guilty for keeping silent while our economy is being run down by quasi policies that seem pretty on paper while the real intent is malicious and subtle and deserves all the criticism its attracting.

This not about bond notes but trust, Stupid!



The Zimbabwean government through RBZ and the finance ministry as well are not being honest or practical to suffering Zimbabweans. A simple technological solution could have and can still save Zimbabwe from the cash crunch, alas, the monetary authority has found an opportunity to introduce a new problem  to solve the small one we have.

Two wrongs don’t make it right, if the RBZ is really concerned about solving our cash crunch with $200 million loan at their disposal is introducing bond notes the best solution to come of the problem. Does this not sound like an opportunistic solution they are embracing.

The US dollar is supposed to be used as a reserve currency and its inherent value have led to its use as a store of value rather than a medium of exchange  seeing many Zimbabweans mainly relying on cash transaction because our policies are too liberal and  are part of the real problem.

Here is a simple solution 

If the RBZ is serious about solving the cash crunch we are facing, obviously as educated as they are they may have come across these three words, bitcoins, plastic money and mobile money services which probably the two are already fully functional but not being implemented to solve our problem.

Its simple mathematics really, instead of only looking at “stimulating exports” with farmers, they could start by wiping away all the people from the bank queues looking for cash, because Zimbabweans really do not need the cash  but a simple medium to transact.

Imagine what kind of economic stimulation it would be if every supermarket, trader, shop owner, school, medical facility,local council,  colleges, service stations, roadblocks, and informal traders is equipped with the mobile POS gadget to receive plastic transaction who would really need the cash.

The RBZ has not done anything to stimulate a cashless transaction society except cheap talk  and probably this time they should exhaust all the solutions before they think of printing any useless notes to represent currency.

We simply can not trust the RBZ

The RBZ governor Mr Mangudya has been quoted saying the African Export-Import Bank (Afreximbank) has provided a $200 million loan to back up the printing of bond notes that will be used to pay a 5% incentive to exporters.

“We have a tripartite arrangement of buyer, supplier and financier. The people who are printing the money know how much we are printing and against what are we printing.

Really, is this not what we were exactly meant to believe during the Gono era? Who else is there to supervise that only $200 million will be printed and specifically for 5% incentive when the same government has no money to pay its own civil servants and other critical services, is this not just a lea way to fund the fiscus?

The Banks are part of the problem.

Most Zimbabweans are unbanked simply because the bank charges are senseless and depositing money not the bank is of no benefit but cost one way or the other and to date Zimbabweans do not receive interest on deposits but monthly charges and the RBZ is fully aware.

Currently, there are more than 500 ZimSwitch enabled automated teller machines and over 7 000 POS terminals.it costs between USc10 and US$1 per transaction to pay for products using POS terminals owned by banks with which depositors are account holders.On ZimSwitch-enabled devices, charges are between US$1 and US$3 per transaction, the system is created to scare away plastic money at all costs.

Who is creating the problem here.

There could be cash hoarding in Zimbabwe and its no secret that our friends from the `east are not even banking and no-one has bothered to investigate them or monitor they transaction yet they are the big fish in the pool and we continue speculating on externalisation while the big fish swim scot free.

If the government is not stimulating other forms of payment are they not the major culprits. Why is that banking with a marginal or reasonable interest ended more than a decade ago and no policy has been put even in a non inflationary  environment, yet they want to look like they encourage banking.

Keep your Bond Notes, Mr Governor!

Nommatter how many litres of make up the government has to put on the bond note frog, it will never look beautiful and it it still remains a frog, infant a big frog sleeping on $200 million which can develop the nation.

There is a lot that could be achieved with the $200 million if the RBZ is genuine and honest in its plea to solve the cash crisis we have in Zimbabwe.

In the US only a tenth of the total bank deposits of US$15 trillion is used as cash, and about 80 percent of consumption in the US is done through the use of plastic money, while they are serious issues of cash illegal deals and illicit deals and they have never faced a cash crunch.


Bond Notes Will Flood the Black market 

Its a fact that they will never be wanted, they will be resisted and they will never last a week holding the same value, sooner or later someone will need to dispose them for real money and sell them at a cheaper rates depending on the availability of cash. Noone knows who else is printing or would be ordered to print.

We are better off without cash, stimulate other forms of payment, why gives cash in the first place when using cash is the only source of the problem, if we are sincere lets stimulate mobile money, Bit coins and our bank cards including Telecast or Eccash debit cards.



Nicole Madziwa

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