MP claims Zimbabwe has already flooded the market with $500 million in bond notes

Zimbabwe has already disbursed more than $500 million worth of bond notes and there is a glut of the notes on the market, the Member of Parliament for Zengeza East Alexio Musundire said in Parliament today.

The Reserve Bank of Zimbabwe says it has only released $79 million of the intended $200 million and has promised that it will not exceed the amount guaranteed by the Afrexim Bank.

Contributing to the debate on the second reading of the Reserve Bank of Zimbabwe Amendment Bill which relates to the introduction of bond notes, Musundire said he had done some research in his constituency and found that even up to now, people did not like bond notes.

“If we look at our economy, from 2008 to date, the money in circulation is more than $600 million at any given time.  If you look at the bond note that is in circulation, it is supposed to be $200 million but they indicated that $70 million will be in the form of $2 bond notes,” he said. 

“What is currently on the ground is that government has already disbursed more than $500 million worth of bond notes. There has been a glut of bond notes and it has exceeded what we have agreed.  The bond note and this legislation is here to steal people’s money.  Let us revert to the US dollar or even the Rand.”

Some people were against the introduction of bond notes fearing that it would fuel hyperinflation but reports say the surrogate currency has stood its ground.

Full contribution

*HON. MUSUNDIRE:  Thank you Madam Speaker.  I conducted research in my constituency as regards the bond note.  People did not accept it and even up to now, they do not like it.  If we look at our economy, from 2008 to date, the money in circulation is more than $600 million at any given time.  If you look at the bond note that is in circulation, it is supposed to be $200 million but they indicated that $70 million will be in the form of $2 bond notes.  What is currently on the ground is that Government has already disbursed more than $500 million worth of bond notes.

There has been a glut of bond notes and it has exceeded what we have agreed.  The bond note and this legislation is here to steal people’s money.  Let us revert to the US dollar or even the Rand.  This is my contribution.  I thank you.

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