‘More in­for­ma­tion needed on bond notes’

Chronicle (Zimbabwe) - - Business Chronicle - Bianca Mlilo

THE busi­ness com­mu­nity says the Re­serve Bank of Zim­babwe (RBZ) is not do­ing enough to ed­u­cate peo­ple on how the bond notes will work.

The cen­tral bank has an­nounced that bond notes will be in­tro­duced at the end of this month. The fa­cil­ity is backed by a $200 mil­lion loan se­cured from the Afrex­im­bank as part of an ex­port in­cen­tive strat­egy meant to boost do­mes­tic pro­duc­tion.

Con­tribut­ing dur­ing the ques­tion and an­swer ses­sion at the 2017 pre-bud­get con­sul­ta­tive fo­rum or­gan­ised by the Zim­babwe Na­tional Cham­ber of Com­merce (ZNCC) in Bu­l­awayo on Fri­day, par­tic­i­pants said there was no ad­e­quate in­for­ma­tion in the pub­lic do­main with re­gards to the bond notes.

As a re­sult of this, they said, most peo­ple were liv­ing un­der the il­lu­sion that bond notes are com­ing in to ease cash short­ages.

“I must say that the level of in­for­ma­tion dis­sem­i­na­tion by the cen­tral bank has not been good.

“All this time I thought that the bond notes were com­ing in to ad­dress the cash short­ages,” said Mr Velile Dube, a ZNCC mem­ber.

Other par­tic­i­pants con­curred say­ing the cen­tral bank should em­bark on aware­ness cam­paigns to ex­plain the use of bond notes.

Some peo­ple have al­leged that the bond notes were in fact Zim­bab­wean dol­lars be­ing in­tro­duced through the back door.

There are also al­le­ga­tions that the bond notes will be used to re­place the hard cur­rency and re­sult in emp­ty­ing of shelves in shops and “burn­ing” of money.

In re­sponse, RBZ in­ter­na­tional bank­ing and port­fo­lio man­age­ment deputy di­rec­tor Mr Ernest Ma­tiza said there were plans to roll out a cam­paign to ed­u­cate the pub­lic on the bond notes.

“We un­der­stand the con­flicted po­si­tions peo­ple are hav­ing con­cern­ing bond notes, but this is mainly due to a con­straint on our part,” he said.

“The bud­get per­mit­ting, we will print out pam­phlets as a way of dis­sem­i­nat­ing in­for­ma­tion to the pub­lic. Th­ese pam­phlets will have in­for­ma­tion on how the bond notes will be is­sued.”

Mr Ma­tiza em­pha­sised that the bond notes were not com­ing in to ease cash short­ages but were in fact an in­cen­tive to en­cour­age ex­ports.

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.