Bond notes con­cept needs ma­tu­rity, calm­ness

Chronicle (Zimbabwe) - - National News -

ED­I­TOR — Out of in­ter­est I was com­pelled to go back to the ori­gins of bank­ing, it started off with pre­cious me­tals like gold as cur­rency.

Hold­ers of gold de­posited it with mer­chants and were is­sued with receipts.

The receipts started ex­chang­ing hands as a means of pay­ment or medium of ex­change, store of value and mea­sure of wealth (money) for as long as they were au­then­tic and were backed by gold kept by some mer­chant.

One may bor­row the same con­cept and ar­gu­ment around the in­tro­duc­tion of bond notes.

Ev­ery ac­count in Zim­babwe has US dol­lars or other currencies in­cluded in the bas­ket of currencies. It there­fore fol­lows that our gold (US Dol­lars in our bank ac­counts) can be rep­re­sented by receipts (bond notes) for pur­poses of con­ve­nience and trad­ing lo­cally with­out prej­u­dic­ing any­one.

The bond notes, even at 200 mil­lion are just a frac­tional rep­re­sen­ta­tion of the to­tal gold in our bank ac­counts, let’s em­brace them.

Our duty is to be re­spon­si­ble cit­i­zens both in­di­vid­ual and cor­po­rate. While spec­u­la­tors are a nec­es­sary evil, let our spec­u­la­tive ac­tions be help­ful to the market and not harm­ful.

It may be time for us to trust govern­ment and for govern­ment to build trust lev­els among a largely pes­simistic pop­u­lace. Our govern­ment has a greater role to play in all this. Nyaku­viruka

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