Zimbabwe: Bond Notes causing stirring issues days after launch!
Not only that the Harare Central Police are using their water-canons on the demonstrators today in the main streets of the capital. The pictures of Bond Notes coming from South Africa have not been enough with the leaked photos online. Therefore the Parliament and Hon. Mnangagwa and Hon. Chinamasa wouldn’t’ answer fellow MPs on their questions about the production of the currency. Secondly a big mining corporation will not start to sell their exported gold from Zimbabwe with bond notes, but continue to trade them with US Currency.
Disclose the Printing:
“Mnangagwa was responding to a question in the National Assembly from Binga North MP, Prince Dubeko Sibanda (MDC-T), who wanted to know if the government would not end up printing bond notes in excess of the $200 million Afrexim Bank facility” (…) “MPs should not be worried because government will restrict itself to the amount of bond notes anchored on the $200 million facility,” he said” (…) “Those of us who feel uncomfortable using bond notes should continue using the United States dollar because bond notes and US dollars are interchangeable. If you have no faith in bond notes, why not continue using the currency that you have faith in?” (…) “Mnangagwa said whenever the RBZ governor deals with monetary policy issues, he has legal authority to transact with other central banks in the world for the benefit of the country” (Langa, 2016).
Still selling gold with US Currency:
“Caledonia Mining Corporation Plc (LON:CMCL TSE:CAL) said there will no effect on its payment arrangements following the recent introduction of bond notes by the Reserve Bank of Zimbabwe” (…) “Since the start of 2014, Caledonia has had to sell all gold produced from its 49%-owned Blanket mine to Fidelity Printers and Refiners Limited, a subsidiary of the RBZ” (…) “ So far all sale proceeds have been received within 48 hours of delivery to Fidelity in US dollars at a price which is 98.75% of the London afternoon “fix” on the day after delivery” (Whiterow, 2016).
Current events as well:
It was also supposed to be One United States Dollar to One Zimbabwe Bond Note (1:1). But only days after the price on the black-market because of the lacking funds in the capital and in the nation of the new currency, the trading value is 1.25 to 1 Bond Notes. Together with the allowed taking out 300$ at the ATMs in Harare, but during today the limit where 150$, so the cash-strapped society continues even as the unleashed new currency hitting the streets. At Stanbic Branches outside you could get max 40$ Bond Notes and inside 25$ Bond Notes. So the issues of clearing the economy has apparently not hit yet. The lacking funds and coins are truly a phenomenon that Zimbabwe doesn’t easily shake out of.
So the easy launch and creating trust after the failing economic climate has showed to be hard on the Zanu-PF regime who has been vultures and eating heavy of the plate. That is something they still do and continues with, therefore the public distrust is genuine and expected. President Mugabe tricks cannot salvage this if the Public has no faith in the currency and not even the big bread-winners doesn’t change their cash-flow. The proof is if the major mining corporations and supermarkets don’t use or accept the Bond Notes. If so then the issue of Bond Notes is flawed. That we can hope, because the Bond Notes is just adding debt and giving the economy a fake push that the citizens would pay and not the government themselves. Peace.
Langa, Veneranda – ‘We won’t disclose where bond notes are printed: Mnangagwa’ (01.12.2016) link: https://www.newsday.co.zw/2016/12/01/wont-disclose-bond-notes-printed-mnangagwa/
Whiterow, Phillip – ‘Caledonia Mining says no impact from Zimbabwe’s new bond notes’ (01.12.2016) link: http://www.proactiveinvestors.com/companies/news/169819/caledonia-mining-says-no-impact-from-zimbabwe-s-new-bond-notes-169819.html