Industry embraces bond notes

Economic analyst John Robertson said acceptance of the bond notes would depend on how banks handle conversion of the bond notes to hard currency as business will need hard currency to restock.

“We don’t want a situation where we will have a parallel exchange for the bond notes. Restriction of foreign payments had to happen, it is only logical. It would be less of a problem for the country if the shops do not to have to import wines and whisky,” said Robertson.

“Policy should be focused on the actual problem, which is the lack of ability to make these goods locally. If we rebuild the capacity of industry we will not need to import and there will be no priority list to talk of.”

Economist Reginald Shoko said the bond notes postpone the return of the Zimdollar, but not for long.

“In as much as it makes economic sense for Zimbabwe to have bond notes circulating in the economy, the country needs to have its own currency. Introduction of bonds notes only addresses the symptoms, not the real problems,” he said.

“Government must restore confidence of the people in state institutions because, at the moment, there is no trust. People are skeptical of the government’s move to introduce bond notes and some will stop putting their money in banks. Zimbabweans must also learn to use plastic money as well as electronic platforms,” Shoko said. “The country has reached a point where business, industry, government and civil society organisations must sit down and craft a lasting solution.”- The Source

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