Categories: Stories

No exports no bond notes-Chinamasa says

Zimbabwe’s Finance Minister Patrick Chinamasa says he is not going to release more bond notes despite the current cash shortages because they are issued relative to exports.

Zimbabwe obtained a $200 million facility from the Afrexim Bank to introduce bond notes which trade at the same value at the United States dollar but has so far only issued $104 million.

When asked why not release the balance and have $200 million in bond notes on the market, Chinamasa said: “We made it very clear, the bond notes are only issued relative to the exports – no exports, no Bond notes in the market and that we are going to stick by.  They are coming in as an incentive.”

On service stations refusing bond notes, the Finance Minister said service stations do not generate foreign currency.

“The foreign currency that they use, they are given by the exporters through the allocation that is given by the Reserve Bank. Of all businesses, service stations have no ground whatsoever to want to withhold or to keep foreign currency or US dollars.

“They have no basis at all. These are the measures which we are going to take to restore discipline into the market which may necessitate – when we get there – to withdraw the licences. They will never repeat it.”

(81 VIEWS)

This post was last modified on %s = human-readable time difference 7:04 am

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024