I wish to advise the Hon. Member to feel comfortable with the decision made in relation to the introduction of bond notes. This was done to take care of internal transactions because we have no control over the circulation of the US dollar, which we have no relation with the Federal Reserve Bank of the US. We can only depend to the extent that we export, as I said previously, that there are four sources that bring in hard currency in US dollars, which I can articulate. That is proceeds from exports, proceeds as a result of Foreign Direct Investment (FDI) in the country, proceeds in relation to the diaspora remittances into the country and bi-lateral or multi-lateral agreements between the Government and foreign countries.
Even if we create assets in the country, we have no basis for matching those assets with money supply because we cannot print the money. To ease that situation, this is why the bond notes have been created which can only circulate within Zimbabwe and not outside Zimbabwe. So, I wish to inform the Hon. Member that he should not feel concerned or worried because the Governor of Reserve Bank of Zimbabwe will restrict himself to the amount which has anchored the issue of bond notes, which is US$200 million. I thank you.
HON. P. D. SIBANDA: Speech not recorded, the Hon. Member spoke in Tonga.
HON. MNANGAGWA: Thank you Mr. Speaker Sir. The fact remains the same. We do not print the bond notes in Zimbabwe – [HON. MEMBERS: Hmmmm.] –
You can speculate but if you want to believe or if you want to deal with facts, these are the facts I am giving to the House but I cannot build a durawall on those who want to imagine beyond facts. The issue….
An Hon. Member having shouted supplementary before the Hon. Vice President finished answering.
THE HON. SPEAKER: Order, order! – [Laughter.] –
– [HON. MEMBERS: Inaudible interjections.] –
HON. MNANGAGWA: I understand this is a democratic House, anybody can speak at any time. There is a binding agreement between the Reserve Bank of Zimbabwe, Afreximbank and the country which is printing these bond notes that it is only anchored on an amount agreed. No excess, nothing can be done beyond what has been agreed by the three parties. Even if tomorrow the Reserve Bank wants to print more than what has been anchored on the facility, he cannot do it because this is done by the three parties to the arrangement. That is a source of comfort for those who may want to believe that – [AN. HON. MEMBER: It appears there is something fishy.] –
There is nothing except to say the fact of the issue is that the bond notes are legitimately a legal tender in Zimbabwe. Those amongst us who feel uncomfortable in using the bond notes should not, and continue using the US$ because the bond note and US$ are interchangeable. So, there is no need for anybody to worry. If you have no faith in the bond note, why do you not continue using the currency which you have faith in? I thank you.
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