#ThisFlag Citizens’ Movement Statement on the detained Pastor Evan Mawarire (02.02.2017)

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BREAKING NEWS: Zimbabwean Pastor, Evan Mawarire reportedly detained (Youtube-Clip)

“Zimbabwean Cleric, Evan Mawarire has reportedly been detained at Harare International Airport. It’s believed State Security Agents apprehended him on his return from the United States where he has been in exile for the past months” (SABC Digital, 2017)

EFF Statement on Zanu-PF’s Response to Calls for President Mugabe to Step Down (24.01.2017)

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Zimbabwe’s Information Minister Dr. C.C. Mushohwe diatribe responding to EFF leader Julius Malema (24.01.2017)

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Zimbabwe: Statement on the Introductionof Constitutional Amendment Bill No. 1 of 2016 (11.01.2017)

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IMF Executive Board Completes the Seventh Review Under the Policy Support Instrument for Uganda (11.01.2017)

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Uganda’s economy has performed reasonably well in a complex environment.

WASHINGTON D.C., United States of America, January 11, 2017 – On January 5, the Executive Board of the International Monetary Fund (IMF) completed the seventh review of Uganda’s economic program under the Policy Support Instrument (PSI).1 The Board’s decision was taken on a lapse of time basis.2 In completing the review, the Board granted a waiver of the nonobservance of the end-June 2016 assessment criterion on the overall deficit of the central government.

The PSI for Uganda was approved by the Board on June 28, 2013 (see Press Release No. 13/78), and a one-year extension was approved on June 6, 2016 (see Press Release No. 16/263).

Uganda’s economy has performed reasonably well in a complex environment. Growth slowed marginally to 4.8 percent in FY15/16, reflecting muted sentiment in an election year and adverse global and regional developments. The current account deficit improved by 1 percentage point to 5.9 percent of GDP, and the Shilling has stabilized after a sharp depreciation in 2015. Growth is projected to nudge up to 5 percent in FY16/17.

Program performance under the PSI has been mixed. Tight monetary policy in 2015 has helped contain inflation in the target range, and the Bank of Uganda (BoU) has started an easing cycle in April 2016. Reserve cover remains adequate. Fiscal revenue and deficit targets were missed, reflecting lower-than-expected growth and election effects. Investment spending fell short, while current expenditure overshot. Structural reforms have progressed, albeit with some delays.

The banking sector remains overall well capitalized, despite elevated non-performing loans. The BoU appropriately took over an undercapitalized bank and is identifying a strategic investor.

Uganda remains at a low risk of debt distress. The scaling-up of infrastructure investment implies a temporary increase in debt, putting a premium on domestic revenue mobilization and ensuring that public investment yields the intended growth dividend.

Looking ahead, priorities include close cooperation with the Financial Action Task Force to ensure Uganda’s swift exit from its “gray” list; strengthening domestic arrears monitoring; and amending the Bank of Uganda Act to reinforce central bank independence.

1 The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF’s Executive Board, signal to donors, multilateral development banks, and markets the Fund’s endorsement of a member’s policies (see imf.org/external/np/exr/facts/psi.htm). Details on Uganda’s current PSI are available at imf.org/uganda.

2 The Executive Board takes decisions without a meeting when it is agreed by the Board that a proposal can be considered without convening formal discussions.

Zimbabwe: “Re: Joice Teurai Ropa Mujuru Vs The President & Others CC275/16” (29.12.2016)

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Zimbabwe: MoU Unauthorised Wearing of Camouflage Uniform (26.12.2016)

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Zimbabwe: Export Incentive Scheme and the Availability of Cash to the Banking Public (19.12.2016)

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Zimbabwe: Secrecy and doubt around the Bond Notes as Barclays Bank in are separating currencies in their branches, as there are lacking trust in the currency!

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We should worry when details and documents proving that Barclays Branches are having forms that are made for both Bond Notes/Coins Deposit. The Barclays are issuing the numbers of the bank and the address of the bank. The other issue is that the Bond Notes are accounted on the value of coins deposit or another currency. Not the value itself on the Bond Notes. The Bond Notes are valued together with another currency, if it is South African Rand and United States of Dollar.

The Worry with seeing the form that Barclays Limited Zimbabwe has created this form where they are valuing the Bond Notes and also separating it. This is happening as the Republic already is lacking enough of the Bond Notes. Some are even questioning if this is the first start of a parallel economy and so you know what that means: “Parallel economy, based on the black money or unaccounted money” (Your Article Library).

So the values might be turned or changed as transactions have become more costly in Zimbabwe as well:

The value of transactions processed on Zimbabwe’s National Payment System (NPS) increased from $1,2 billion to $1,5 billion as the volume of transactions went up by 13 percent in the week the Reserve Bank of Zimbabwe (RBZ) introduced bond notes, a report by the central bank has shown” (…) “The RBZ has said it will release a total of $75 million worth of bond notes by the end of this year.” (Zimbabwe Mail, 2016).

With the cash-shortage and the promised delivery together with the volume of transactions in Zimbabwe proves the Reserve Bank of Zimbabwe wasn’t ready, neither we’re the Hon. Patrick Chinamasa has to keep up his promises and deliver a grand policy to revitalize the economy.

The RBZ has increased the rate of printing with the latest batch of notes worth $7million being delivered at Harare International Airport in the last few days a Ukranean Jet. But the development will worsen the plight of safari operators who have already experienced a 25 % slump in business this year” (ZimEye, 2016).

Since the Tourist doesn’t trust the currency, neither does the locals as the government and finance ministry are keeping the secrecy around the production and cost of the currency doesn’t add to the faith in the Zimbabwean Bond Notes, as the draconian state tries to silence the #NoBondNotes and #Tajamuka are getting real. The batches worth $7million of Bond Notes haven’t done what they we’re supposed to do, as they cannot even create trust between the citizens and the financial institution.

The Comment from the Independent are clear on the Bond Notes: “Government domestic debt — which stood at US$3,7 billion as at October 2016 — is clearly unsustainable. In a normal economy, Treasury Bills (TBs) are a useful short-term instrument for raising funds via open market operations. But in Zimbabwe’s case, TBs have not been deployed prudently. In fact, TBs are a ticking time bomb. Long before bond notes spooked the market, the authorities were churning out TBs which, to all intents and purposes, were effectively a local currency by another name” (The Zimbabwe Independent Editor, 2016).

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So when the Government has this massive debt and delivers a little bunch of currency that isn’t trusted because of secrecy, the reality is also that the Zanu-PF haven’t really tried to be honest about their approach on the Bond Notes. They seem like a giant loan from the Afreximbank who borrow the funds so the Finance Minister Chinamasa could afford to chip the monies on the public. So the public and citizens are in the paying for the added debt for a currency, which isn’t valued by anybody. Even the banks operating in Zimbabwe is making ready for a parallel economy with the Bond Notes. As we can question as the Barclays of Zimbabwe has separated the foreign currency and the new note.

In July 2016 the Afreximbank:

“The RBZ has said the bond notes, which will trade a ratio of 1:1 with the greenback, are backed by a $200million Afreximbank bond facility, from which they derive their name” (New Ziana, 2016).

So now the first batch was $7million worth out of the proposed $200million loans used to put the Bond Notes to the citizens of Zimbabwe, which I have proposed from the get-go is added in the debt into the hands of the citizens as they get indebted with the notes and also with the surging government spending.

There aren’t clear indications that the bond notes will add anything positives, as even the banks are now showing resistance and proving their little faith in the currency. Not only the citizens, but also tourists, visitors of Zimbabwe don’t even trust it.

Like this example:

“The informal traders lament that they are slowly losing faith in the new currency as it has been posing a myriad challenges towards their business, which is solely hinged on imported wares” (…) “The flea market traders import various wares from neighbouring Mozambique, mostly second hand clothes and shoes” (…) “Murayirwa further added that it becomes a challenge since the Mozambican Bureau de Change only cross rates US$ against Meticals” (…) “This is an unnecessary headache. Bond notes are going to kill our business. This business is supporting close to 1,000 breadwinners. Most of the people here were formerly employed by the major industries that closed and they had no choice but to come here to support their families. Yes we understand that government is trying to solve cash challenges in the country, but they are doing so at the expense of thousands of other families whose businesses are in jeopardy now,” said Murayirwa” (Nehenda Radio, 2016)

The Zimbabwean citizens struggle with paying and exchanging monies to importing things to sell at the markets, as proven with this example. The small-scale entrepreneurs who are important at markets to sell needed products at a decent price; they cannot do so if their currency isn’t valued. Therefore the trust of the Bond Notes is lower than when they we’re introduced.

The reasons are the secrecy and the uncertainty of the effects on the market as it was unleashed to the people. Still close to a month after the release there isn’t any proof of any good coming out of the currency, other than surely some unknown Zanu-PF cronies earning fortunes on it! Peace.

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Reference:

Nehenda Radio  – ‘Traders decry loss of business because of bond notes’ (15.12.2016) link: http://nehandaradio.com/2016/12/15/traders-decry-loss-business-bond-notes/#sthash.cEnubUzE.dpuf

New Ziana – ‘Afreximbank to state position on bond notes’ (01.07.2016) link: http://www.herald.co.zw/afreximbank-to-state-position-on-bond-notes/

Your Article Library – ‘What is the Meaning of the Parallel Economy?’ link: http://www.yourarticlelibrary.com/economics/what-is-the-meaning-of-the-parallel-economy/2720/

The Zimbabwe Independent Editor – ‘Govt’s budget a non-starter’ (16.12.2016) link: https://www.theindependent.co.zw/2016/12/16/govts-budget-non-starter/

ZimEye – ‘Secret Bond Note Printing Accelerates’ (16.12.2016) link: https://www.zimeye.net/secret-bond-note-printing-accelerates/

Zimbabwe Mail – ‘Value of financial transactions up 23pct following bond notes injection’ (15.12.2016) link: http://thezimbabwemail.com/banking-finance-34021-value-of-financial-transactions-up-23pct-following-bond-notes-injection.html