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

The rise of #ThisFlag Movement Pastor Evan Mawarire: the Civil Rights Activist and leader that Zimbabwe and the world needs right now!

Evan Mawarire 13.07.2016

Pastor Evan Mawarire, the Zimbabwean Civil Rights leader who started wearing the Zimbabwean Flag and called for demonstrations wearing it in public. The Zimbabwean Flag became a tool of resistance and defiance of the Zimbabwe African National Union – Patriotic Front (Zanu-PF), the ruling regime that has been in power since 1980 and under the current President Robert Mugabe.

Robert Mugabe reign started hopeful, but has turned sour over time. President Mugabe has forgotten his struggle is keener on buying jewellery for his wife than caring about his citizens. Therefore the rise of men and civil rights activists like Evan Mawarire is extremely important to change the republic. A republic that has become corrupt cronyism and where the foundations are shaking; where the police brutality and impunity runs rapid. Where massive amount of citizens are living in the diaspora and flee to live in shacks in South Africa.

This is the legacy that is left behind after decades under the President Mugabe, the real change never came, only that that the Zanu-PF elite got to eat and takeover lands from the inherent former colonial tribes and given that away to Zanu-PF elites and generals. So this has shackled the production of a former breadbasket, as the El Nino even made the lacking foods worse. The drought together with the lacking agricultural policies made the former proud farmer nation into a nation who needs help to feed it; so the independent nation needs more help than before existence of Mugabe Administration.

The thieving of export funds together with the problematic inflations, as well as faltering currency policies that lead to the depleted economy, as well as International Monetary Fund and World Bank put sanctions or suspended needed loans to the Zanu-PF government. The Zanu-PF has used the funds on their own and had famous parties for the President and his family. As well as the Vice-President putting hotel bills on the government as he lived over 1,5 year at hotel in Harere and sponging of the government coffers.

With the knowledge of this, with the lacking medication on the hospital, the lacking payments of salaries to the civil servants and others proves the lack of governance. The allocations and misuse of funds is rampant as the Zanu-PF elite rides in expensive imported SUVs while the common-man cannot get out enough funds at the ATMs to pay their rent or pay for food suppliers at the market.

In this context came the monumental rise of a simple man, not a man of wealth or kin of former renegades against the colonial Ian Smith Government. Evan Mawarire was close to nobody before 2016 and #ThisFlag Movement. He wasn’t somebody who was well-known. Still, his cause through peaceful means became too much for the government to handle. Therefore they abducted him and as the whole day in Court happen with a dozens of the lawyers who worked Pro-Bono for the man, because they saw his cause and his rise. Pastor Mawarire, we’re a citizen and an outspoken one, who showed no fear for the repression of the Zanu-PF. That because it seems like a genuine cause and heart for his nation. The Republic that birth him and raised him, he wanted a republic with a government that would represent the people and not just bow-down and bend knees for Mugabe.

That is what it is now. The Zimbabwean nation with their mismanaged bond-notes who are another tactic of the Zanu-PF to gain spoils on loans and trying to get more out of the foreign currency in the nation. So the Zimbabwe Reserve Bank together with the President Mugabe hustling more out the poverty with the transaction of  loaning a fortune and then exchanging the foreign currency surplus to the elites. White-washing the bond-notes at the same time; a successful receipt to destroying faith in monies and getting a new 2008 crash-course in hyper-inflation; something the Zanu-PF under Mugabe has created before!

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So the #Tajamuka, #NotoBondNotes and #ThisFlag together with the rising men and woman who acts against Mugabe and his regime are currently rising with 2016 year coming to the end. Evan Mawarire is a symbol, not only a man who sadly had to flee to United States after the short trial where the public waited for him to released. They proved the people power over a corrupt crony government with draconian laws and a security apparatus that takes the freedom, liberty and opportunity away from the citizens.

The Zanu-PF under Mugabe isn’t giving the Zimbabwean people hope, he is destroying while eating the spoils, while running away from his killings and his damaging rhetoric that has barricaded himself and left him alone. The ones that are loyal to Mugabe isn’t there because the love him, but they love the brown envelopes. There isn’t a policy or political framework that can build the nation or change the pattern of destruction under Mugabe. He has only his own will, which he believes is the will of the Zimbabweans.

If it we’re so, the people wouldn’t felt touch and felt the need for Pastor Evan Mawarire, there wouldn’t be a unknown pastor who turned civil rights activist who would make the headlines, it would been men like Morgan Tsvangirai and Acie Lumumba should be in charge, they should blaze the winds of change. Tsvangirai under the Movement for Democratic Change that had a popular rise a decade ago and nearly toppled the Mugabe regime. The current youth leader and populist Acie Lumumba his VIVA Zimbabwe we’re supposed to garn support, but it doesn’t. Their ties with Mugabe and history are making people sceptical of their will to change the cronyism.

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Zimbabwe needs people like Evan Mawarire, the world needs people like him and that has faith in peaceful disobedience against greedy oppressive regimes. Mawarire needs Zimbabweans and the world needs to support his cause for peaceful change. Mugabe isn’t automatically entitled to be president, than he is a Zimbabwean King. Kings are entitled to their role as leaders of their people and to be monarchs. But a President is elected to represent the people and ones in the dominion that the President has the power to rule, because the hand over that power to the person through elections or other functions that make it just. That hasn’t happened in Zimbabwe.

The people in Zimbabwe deserve a government that represent them and work for their will, not being in Harare to earn on the public coffers and earn on loyalty to Executive Mugabe. So the rise of a man like Mawarire is bound to happen because of the injustice happening time and time again. Too many people and their stories dwindle away, so many people have suffered while the rich has eaten, as they have built mansions and owning land instead of building institutions and invested in the people.

Charge Against Evan Mawarire

#ThisFlag and Evan Mawarire are the signs of hope, the signs of people wanting justice and development for their nation. That would be well deserved, the liberation from the Ian Smith regime wasn’t to make sure the liberators could eat the spoils, but actually the free-men of Zimbabwe could live free and earning a proper living for their work. That is dream right now, the rights are only for the entitled in the Zanu-PF the others has to beg. The justice is of two nations, the ones living in the elite and the rest. It’s the rest that needs men and woman like Mawarire, the world need people like him to address the concerns of people in need and who deemed poverty with no voice for their concerns. They are the ones that needs help and needs a government working for them. Instead they are keener on fixing the riches for the elite and finding new ways of short-conning the population. So the Mawarire has to rise-up and say “enough is enough” the Zanu-PF has used their time and taken the people for granted; the Zanu-PF doesn’t deserve anymore, they have used their time and spent it unwisely. Mugabe forgotten his struggle and his riches has blinded him from the cause that lead him to power.

Therefore he had to call out Mawarire and claiming his cause we’re useless. He was hurt that one of his citizens called him out and acted against him. Mugabe made this way and now have to see what he has made, but his stubborn acts of ignorance, his will of keeping enriching himself, is the reason for the rise of the Pastor. The Pastor wouldn’t be anybody if it wasn’t for the oppressive and brutal regime. The regime of Mugabe has lost their way and lost the reason for existing… Peace.

Opinion: It’s total silence not defiance anymore

Dr. Kizza Besigye Quote Outspend

The Campaign of Defiance is dead, because the compliance has sunk the ship of Defiance that we’re ushered in with the Presidential Campaign of 2015/2016 of Forum for Democratic Change (FDC) and for the Presidential Candidate Dr. Kizza Besigye. The rigged and fraudulent election went down, the President since 1986 President Yoweri Museveni triggered election victory with 100% in dozens of districts and acted vicious in others; that are known opposition strongholds like Kampala, Wakiso and others. Therefore the FDC and Besigye should have and could have grievances on the methods of suppression of the votes.

Besigye’s campaign of defiance was a grand idea in the darkness of an oppressive regime under the National Resistance Movement. The NRM has for decades and during previous elections used public funds, used the state and security organizations to spread fear instead of free and fair election. As well as hiring fellow cronies in the Electoral Commission that we’re working directly on orders for the Movement instead of securing the popular vote, as well as using the Police Force and the Army to show where the loyalty should be, also gifts of soaps, food and small fees to take part of rallies in the districts. This has been NRMs way of spreading loyalty and fear mixed together.

So the Defiance campaign was a good idea, to defy the rigged system and state apparatus that has eaten the whole plate and only follows orders of loyal cronies of Museveni. That in itself was genuine and straight-forward plan from Besigye, only if more of the citizens and the party he was apart of really believed in it. As with time the defying plans has been silenced, the fighting the machine and corrupt behaviour of the state has turned silent.

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The FDC and the defiance after the failing Election Petition of the Go-Forward and Amama Mbabazi in Supreme Court, the FDC and Besigye hasn’t had the levels of defiance in them or tried to defy the structures that validates the regime. The FDC has turned into compliance as the swearing-in of Museveni happen and the Members of Parliament we’re sworn-in after the fraudulent election. It was topped when certain MPs went into Shadow-Parliament and legitimized the Movement.

So with this the FDC themselves did comply with Museveni and his fellow cronies instead of defying the ruler. They went into the chambers made sure they got paid and later trying to follow the lead of Besigye isn’t believable. That the same men and woman who easily take the small-change at the Parliament and later goes to FDC Prayers is playing to games.

The Short-Con is the Shadow-Cabinet and validating the rule of Museveni to make sure their pockets are filled and that their MPs respectability is fixed so their families and friends are secured. But with this they are forgetting the long-term damage to be parts of Movements skin-democracy.

The Long-Con is that with the sharing parts of the skin-democracy and playing the game of the freedom fighters while not really working the cause. So the long-con is some of the FDC leadership roles right now, only patching the hurt, but not trying to rebuild.

FDC 05.05.2016 Planned March

The Defiance Campaign was about defying the Movement… something that the FDC didn’t do, which is complicated and also lacking of moral support from the FDC while he was serving time in Moroto and Luzira. They might show up to gates of the prison and even say publicly that they condemn the Police Force actions against the democratic and rights to assemble as an opposition party.

So the plan of Defiance wasn’t supposed to be one-man band, Besigye wasn’t supposed to carry it on his own. Besigye weren’t alone as we could see youths, P-10 Groups and FDC-Diaspora we’re supportive efforts. You had and still have Lord Mayor Erias Lukwago and Gen. David Sejusa. Still, they have very few others who have been under fire at the same level without trading their souls, there is Ingrid Turinawe and Doreen Nyanjura has fought battles without much to gain.

That the silence in general should be worrying as the Police Force are continuing to battle with Besigye, his house is still besieged and the man is monitored every movement. If he breaks the barrier and creates public excitement, than it’s straight into detention or police brutality cases towards the crowds that surge the man.

Besigye should be free, the country should be free, but the silence isn’t saving anything. The silence has settled the defiance campaign and the mentality of the defiance agenda. They didn’t build momentum enough to stop the daily life and hurt the business of the movement. The defiance didn’t stop the Uganda Revenue Authority (URA) from collecting VAT or stop exports of fuel. The Defiance didn’t stop the UPDF from getting new recruits or any other possible monetary deficiency the campaign could do. Just like the shops stopping trading as the shop-keepers we’re even detained for doing so, because it hurt the taxation and trade that the Movement needs to run their merry-go-round of graft and embezzlement of public funds.

The Defiance could have worked if the FDC and Besigye had gotten the momentum and had the public will behind them, not the half-ready pile of work, sort of like the way the Police Force in Uganda picks up intelligence as they see fit in forged police case. The FDC could have used the anger and frustration of the public, the citizens who feel used.

So the May Protest this year we’re starting of profound messages that the citizens we’re on the road of pressing the government. So much we’re ready as they remembered the recent thieving of their future from the Movement yet again, the wounds we’re fresh. Still the army had been in the streets, the Police Force we’re targeting the opposition and also civil society offices we’re attacked.

FDC Youth 14.03.2016

The people shouldn’t be silenced as the Christmas season are in line, the FDC cannot carry this alone, not that all of them wanted the defiance; they wanted the easy compliance life of the pseudo-opposition instead of a fighting defying organization that could get rid of the militarized movement that been running it since the 1980s. That should be KEY. That should be the goal of the FDC; instead many went into legitimizing it.

So the silenced is understandable, Besigye and his trials cannot be of only him and it isn’t, but it is many who has given in and went back to business-as-usual. Besigye could have more support from the FDC NEC, but he hasn’t. They don’t have the backbone and the wish to succeed. They gave in when it was going against the grain. They we’re risking it all and couldn’t. While Besigye is again under a “treason” charge as others who are questioning the Movement; the others are walking free and without any Court Orders in their name.

It’s not like the man who took the power by the gun want to leave silent or let it go easy, he fought a brutal bush-war. Now he has a big-army and guerrillas of M23, Museveni got allies of USA and Russia dropping arms in his favour so he can suppress his people. Citizens can fight this, but they cannot only rely on Besigye. Besigye only has power if the people are behind him. If the people are working with to dismantle the regime, but the silent obedient citizens are changing an illegitimate regime. Civil disobedience and systematic effort to discontinue the regime would be true defying the Movement. Instead the silence is what is running the tides as 2017 are coming around the corner. Peace.

Joint Civil Society Statement: Zimbabwe Must Respect and Protect the Right to Freedom of Peaceful Assembly, Participation in Political and Governmental Affairs, and Personal Integrity (10.12.2016)

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Zimbabwe: Correcting a Statement in the Sunday Mail Article “Government to continue importing US Dollars” (04.12.2016)

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Brexit: Davis Davis proposition today not such an exit after all; pre-Brexit has proven implications for Central Bank of Ireland and Ofcom!

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I am sure today that Yes Minister is fitting as the quotes in Parliament and the previous uttering words of Boris Johnson about free-movement that counter all the work of the Brexiteers during campaigning for the cause. The work that we’re to pretend that the separation from the continent would be peaceful and jolly; but the Brexiteers didn’t know and the Tories still doesn’t know.

Therefore I begin with this a re-cap of TV in 1981:

“Sir Humphrey Appleby: Well, Minister, I’m afraid that is the penalty we have to pay for trying to pretend that we’re Europeans. Believe me, I fully understand your hostility to Europe.

James Hacker: I’m not like you, Humphrey. I’m pro-Europe, I’m just anti-Brussels. I sometimes think you’re anti-Europe and pro-Brussels” (Yes Minister – ‘The Devil You Know (#2.5)” (1981).

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Today the Brexit-Minister Hon. Davis Davis uttered these wonderful words in Parliament:

“The simple answer we have given to this before is, and it’s very important because there is a distinction between picking off an individual policy and setting out a major criteria, and the major criteria here is that we get the best possible access for goods and services to the European market. If that is included in what you are talking about then of course we would consider it.” (Watts, 2016).

So the ones leaving is now changing terms, they want to set standards that opens the market. While still being outside the Union, so the Brexiteers wants now to get the full benefit while being outside. This doesn’t fit with the hazardous statements from Martin Schulz and Jean-Claude Juncker who has said their peace about an easy transition!

Certainly the European Union wants to make an example of the United Kingdom and their markets; they have to pay dearly to be part of it, while wanting to secure their borders and movement. Now, the Davis Davis wants its simplified.

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Irish Central Bank sees this already:

“He said the Central Bank’s workforce planning for next year reflects the additional resource needed to deal with applications and contingency has been built in as it is expected that the financial sector will grow materially” (…) “Mr Roux told reporters after the Dublin event today that the Central Bank was seeing applications for new business and the licensing of firms who are not present here” (…) “He also said it was seeing very significant indications from “regulated firms that are small today but want to be big tomorrow” (…) “We see the whole gamut of firms enquiring for establishing or growing in Ireland, it is MIFID (markets in financial instruments directive) firms, insurance companies, CSDs (central securities depositories) and payments institutions,” he added” (Rte, 2016).

So when businesses are looking towards Dublin, which is in EU and already part of the European Single Market; the London based firms might move to Dublin to secure their profit-lines and such. Even the Central Bank of Ireland is seeing this. This must really hurt the Brexiteers who fought well, but didn’t think of the implications. Davis Davis sees this now and wants to be able to go out of being EU Member State, but still being part of EU Single Market.

That is really the Norwegian EFTA model, but they will have hard time and pay lots of funds to get what they have now and would also betray the democratic values of majority vote that wanted a true separation, which this isn’t. Then the Tories will do the same trick as the Norwegian Government did to their public, when they signed the EFTA and made agreements to join the EU Single Market, but not having the EU Member State privileges. Something the United Kingdom is losing with triggering the Article 50 of the Lisbon Treaty.

This is so special and so weird. That Hon. Davis Davis are acting and flip-flopping like this. Surely the warning from Ofcom must say something as well:

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“Chief executive Sharon White said that the industries her organisation oversees are “inextricably European” and could be badly hit if they are not taken into consideration when arranging the UK’s exit for the EU” (…) “Making Brexit a success matters for communications – because these services are fundamental to our lives,” she told the Institute for Government in London” (…) “She said: “The country of origin rule is a good example of an EU law that benefits member states and supports broadcasters – providing a mass audience, and promoting cultural exchange by transcending borders” (…) “But keeping this principle after Brexit will demand constructive discussions with European neighbours. Country of origin cannot endure merely by virtue of existing in UK law.” (Sky News, 2016).

So with this the broadcasters like Ofcom and Central Bank of Ireland sees the implications of the Brexit with their bare eyes. The indications are not put in light of joy and positive future, as the Irish might get more business, this means that corporations moving to Dublin instead London, because of the safety of EU Single Market that the Hon. Davis Davis wish to keep and pay Brussels, but if the EU will accept it is mere speculation.

The Tories government has decides as the Prime Minister Theresa May has to make decisions that makes the Brexit successful. But early November 2016 a leaked memo showed that the government hadn’t done due diligence or check and balance for the industries. Which is evident with the corporations planning to move and Ofcom are sceptic to the Brexit itself.

Therefore the reactions to the Brexit will continue to come for businesses and for the Parliament; the House of Commons would surely be a bit shocked by the proposition from the Brexit Minister. We all are, not like Irish paying for Welsh roads, but still spectacular thinking about how the Brexit Campaign celebrated the idea of total freedom from EU. Now they want the perks, as long as the EU accepts the fixed payments for the entry to the Single Market. Peace.

Reference:

Rte – ‘Central Bank not seeking to dissuade UK financial firms from moving to Ireland – Roux’ (01.12.2016) link: http://www.rte.ie/news/business/2016/1201/835805-central-bank-says-not-dissuading-brexit-moves/

Sky News – ‘Ofcom boss warns of Brexit impact on UK communications sector’ (01.12.2016) link: http://news.sky.com/story/ofcom-boss-warns-of-brexit-impact-on-uk-communications-sector-10679371

Watts, Joe – ‘Brexit: David Davis says UK Government could pay money to EU for single market access’ (01.12.2016) link: http://www.independent.co.uk/news/uk/politics/brexit-single-market-access-david-davis-eu-money-uk-a7449416.html

Zimbabwe: Bond Notes causing stirring issues days after launch!

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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).

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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.

posb-zim-statement-01-12-2016

Reference:

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

Zimbabwe: Cabinet decision on Witch Hunting (29.11.2016)

zim-witch-hunting

Welsh politician: ‘Could Ireland use EU funds to pay for our motorway improvements?’ (Youtube-Clip)

“Ukip has asked the Welsh government to seek EU funding from the Irish government to help upgrade a motorway between London and south Wales. The M4 motorway is the main artery between the main cities of Wales and the rest of the UK – but it also carries a large amount of Irish goods exported and sold there. Ukip assembly member David Rowlands made the appeal to the Welsh National Assembly this afternoon. He says that Irish exporters also rely on the M4 to transport goods to other EU countries on the continent – and told TheJournal.ie that it is “quite a reasonable idea to explore”: http://jrnl.ie/3109404” (TheJournal.ie, 2016)