Bring the bond notes: In­dus­try

Chronicle (Zimbabwe) - - Busi­ness -

The CZI head and chief ex­ec­u­tive of­fi­cer of United Re­finer­ies Limited said the com­ing in of bond notes would see in­dus­try be­ing able to price their products in smaller de­mon­i­na­tions like 85c, for in­stance, with cus­tomers walk­ing away with 15c change.

He said the coun­try was cur­rently stuck with the old United States dol­lars, which he said were be­ing re­jected in other coun­tries.

Mr Moyo said he vis­ited South Africa and was dis­ap­pointed when the US dol­lars he had were re­jected for be­ing dirty.

“We are us­ing dirty old notes, which are not ac­cepted any­where. The ones we use here are dirty and we have an op­por­tu­nity of us­ing the bonds coins and notes in the coun­try, with which we can pay toll fees and buy toma­toes,” he said.

Mr Moyo said the bond notes would not be forced on peo­ple, as gov­ern­ment said, adding that any­one who is not will­ing to use them was free not to.

“We take com­fort in the prom­ise by the Gov­ern­ment that there would be a board to run the bond notes. The notes are not com­pul­sory. One can chose to refuse them. For busi­ness we should be okay and we wel­come the use of the bond notes as long as they are ac­cepted by the peo­ple,” he said.

The bond note fa­cil­ity is backed by a $200 mil­lion loan se­cured from Afrex­im­bank. The Gov­ern­ment has adopted the ap­proach as part of mea­sures to in­cen­tivise pro­duc­tion in the econ­omy through a five per­cent ex­port in­cen­tives fa­cil­ity payable in bond notes.

This means the level of cir­cu­la­tion of bond notes will be tied to ex­ports. The move is also part of a broad strat­egy to curb cap­i­tal flight and ex­ter­nal­i­sa­tion, which has dogged Zim­babwe’s for­eign cur­rency re­serves since dol­lar­i­sa­tion in 2009. — @pchi­tumba1

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.