Bond Note Policy Divides Zanu PF
Published: 2016 May 12 09:22:26 (3638 Views)
Reports have emerged that new government policy to introduce bond notes into circulation have divided Zanu PF, with some legislators expressing fears that the move could trigger hyper-inflation and panicky cash withdrawals, as depositors fear a repeat of the 2008 economic meltdown.
Ruling party MPs and officials, who spoke to a local publication , said the move was akin to addressing symptoms instead of the root cause of the cash shortages.
Parliamentary Portfolio Committee on Finance and Economic Development acting chairperson Terrence Mukupe, posting on his Facebook page, said: “We are addressing symptoms and not the root cause of our problems. We have a flight of the United States dollar out of our economy causing the cash shortages.”
Other Zanu PF MPs, who spoke on condition of anonymity, said it was hard to convince people to accept bond notes in view of the massive losses they suffered during the switch-over from the Zimdollar to the multi-currency system in 2009.
Another MP weighed in saying they would adopt a wait-and-see attitude, while also taking precaution on their savings.
“The way we operate in Zanu PF is that there is no room for divergent views. Although the bond notes are going to solve the immediate problem, they will, however, create a bigger problem and in no time the black market will be a thriving business,” he said.
Zanu PF activist and Harare provincial secretary for tourism Acie Lumumba said different sectors of the economy were likely to be affected.
“Imagine trying to explain to a tourist they must convert their US$ in exchange of bond notes – it’s a total mess,” he said.
“The Reserve Bank of Zimbabwe (RBZ) governor (John Mangudya) did the right thing to stop the bleeding and I feel for him, but the real problem is how we ended up here. Bond coins are a pain killer, but the real cancer is self-destructive management.”
But Zanu PF chief whip Lovemore Matuke said MPs and other ruling party officials who did not understand the policy measure should seek assistance from relevant authorities.
Zanu PF secretary for finance Obert Mpofu was optimistic the bond notes would address the prevailing liquidity crisis.
“I know that whenever there is a policy change, there are sceptics who don’t believe the benefits that come with it,” he said.
“But let me assure the public that as Zanu PF, we have looked at this policy carefully and evaluated its benefits and non-benefits, if any. There is no governor of a county who would introduce such a policy which is against the public.”
While senior Zanu PF members were buoyant, informal sector representatives have threatened to mobilise their members to withdraw their money from banks and keep it elsewhere in protest.
Analysts said the government had a tall order in instilling confidence in the people that past challenges associated with the Zimdollar would not be repeated.
- News Day
Ruling party MPs and officials, who spoke to a local publication , said the move was akin to addressing symptoms instead of the root cause of the cash shortages.
Parliamentary Portfolio Committee on Finance and Economic Development acting chairperson Terrence Mukupe, posting on his Facebook page, said: “We are addressing symptoms and not the root cause of our problems. We have a flight of the United States dollar out of our economy causing the cash shortages.”
Other Zanu PF MPs, who spoke on condition of anonymity, said it was hard to convince people to accept bond notes in view of the massive losses they suffered during the switch-over from the Zimdollar to the multi-currency system in 2009.
Another MP weighed in saying they would adopt a wait-and-see attitude, while also taking precaution on their savings.
“The way we operate in Zanu PF is that there is no room for divergent views. Although the bond notes are going to solve the immediate problem, they will, however, create a bigger problem and in no time the black market will be a thriving business,” he said.
Zanu PF activist and Harare provincial secretary for tourism Acie Lumumba said different sectors of the economy were likely to be affected.
“Imagine trying to explain to a tourist they must convert their US$ in exchange of bond notes – it’s a total mess,” he said.
“The Reserve Bank of Zimbabwe (RBZ) governor (John Mangudya) did the right thing to stop the bleeding and I feel for him, but the real problem is how we ended up here. Bond coins are a pain killer, but the real cancer is self-destructive management.”
But Zanu PF chief whip Lovemore Matuke said MPs and other ruling party officials who did not understand the policy measure should seek assistance from relevant authorities.
Zanu PF secretary for finance Obert Mpofu was optimistic the bond notes would address the prevailing liquidity crisis.
“I know that whenever there is a policy change, there are sceptics who don’t believe the benefits that come with it,” he said.
“But let me assure the public that as Zanu PF, we have looked at this policy carefully and evaluated its benefits and non-benefits, if any. There is no governor of a county who would introduce such a policy which is against the public.”
While senior Zanu PF members were buoyant, informal sector representatives have threatened to mobilise their members to withdraw their money from banks and keep it elsewhere in protest.
Analysts said the government had a tall order in instilling confidence in the people that past challenges associated with the Zimdollar would not be repeated.
- News Day
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Anonymous user
2016 May 12 13:38:31
Since Mugabe came into power he has been against the public, why would it change now. They're just making an easy way for them to steal more free money.
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