Bond Notes Disappear – Chamisa

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Movement for Democratic Change deputy President Nelson Chamisa says bond notes which were introduced towards the end of last year will disappear just like the Zimbabwe dollar because the fundamental issues that led to the demise of the Zimbabwe dollar have not been addressed.

“We see this bond note coming; again, it is going to go down the drain just the same way the ZIM dollar was actually affected because we have not addressed the real cause,” Chamisa told Parliament.

“We are students of the cause and effect, we just do not want to come here and now tinker on palliatives on peripherals and we look at cosmetic issues without addressing the core of the issue, the core of the matter which are issues of confidence, issues of governance, issues of making sure that we move away from certain fiscal conduct and fiscal behaviour that is not in line with what is expected of a modern economy.”

Chamisa said he was against the issue of withdrawal limits.

“Why should you limit the resources that I worked for?  If I have US$20 000 in the bank, let me have access to my US$20 000.  If I have US$40 000 in the bank, let me have access to my US$40 000.  Why should you make a way of limiting and controlling?

“Now, this is where we have a problem, Hon. Speaker Sir.  You cannot have command agriculture, command economy, command currency – everything you want to command.  There is a problem in commanding certain things.  The economy does not respect commandments of politicians or policy makers.  It respects commandments of the market, of course with the necessary State intervention.” – The Insider

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  • Zvichapera

    The truth of the matter is that the so called command is mere confusion. You will see that 2017 will be misery through and through.

  • todiizvazvo

    VaChamisa vanozonyanya kutaura chokwadi chinorwadza!!!

    Sorry, bhururu, but we just commanded Air Zim to take us to China for a Holiday!!!
    Chao!!

  • HENDRIX

    In Chamisa there is a seed that many politicians lacks, Thumbs up VP

  • Mambo

    Hon Chamisa is spot on. If printing the USD via Bond Notes is a solution to forex shortages why haven’t other countries done the same?At the moment people are using Bond Notes to buy imported products. How will the sellers of these imported products re-stock since they cannot import using the Bond Notes?Its premature to say the Bond Notes are a solution to forex liquidity crisis. Tourism has dried up and export earnings will begin to decline. Prices of goods will skyrocket, inflation will spike and shortages will be rampant and parallel market will thrive and in no time the Bond Notes will trade at a huge discount to the USD. Once this starts happening we will have a wage/price spiral. That is what Economic theory says and we wait to see if Zimbabwe will re-write these economic laws and change the predictable outcome. Time will tell!!

  • Prof Jonzo

    Chamisa is Right but paBond he missed it you can compare Bond and Bearer Cheques. Right now we are using Multi-Currency but USD is to Special to be used to buy Mashuku and Madora and since Zimb doesn’t have its own currency and we dont know when to have it. The RBZ found it reasonable to have a DUAL money to USD here in Zimbabwe something with the same value with the USD but can not be used outside Zimb so that those who are busy externalising our Dollar will not be able to do that.

  • Mzimba

    Your dollar! My foot! Zim will never be liberated if people look at issues the way you do.

  • Economist

    @Prof Jonzo. U don’t understand the way economics works. While now it seems Bond Notes have eased the cash crisis they must lead to bigger problems shortly since RBZ cannot print the real USD. Bond Notes are poisonous and so we are currently taking the poison in small doses and dying slowly of Bondilitis a disease which comes from excessive use of Bond Notes and is similar to hyperinflation. The use of worthless Bond Notes to buy valuable assets will backfire at some point. If these shops are flooded with electronic money and Bond Notes they will fail to restock imported items and therefore shortages of goods must set in and the prices must rise, so will inflation, the exchange rate between the Bond Note and USD will rise infavour of the USD and incomes will be depreciated etc. The Bond Notes will eventually become worthless just like the ZWD and Bearers Cheques did in 2008. History repeats itself and Hon Chamisa will be vindicated. Its a matter of time!!