The main opposition Movement for Democratic Change led by Morgan Tsvangirai has opposed the introduction of bond notes from the word go. The reason. This was a way of bringing the Zimbabwe dollar back through the back door.
“Zimbabweans are kissing good-bye to the last vestiges of macro-economic stability,” MDC-T Shadow Minister for Finance Tapiwa Mashakada said in a statement immediately after the Reserve Bank of Zimbabwe announced that it would be introducing bond notes.
“It is very crystal clear that government is warming its printing press at Fidelity Printers. History repeats itself. Zimbabwe has back slided to its 2008 economic comatosse position again. These are the consequences of a stolen election, corruption, illicit financial outflows, lack of fiscal discipline, externalization, a growing public debt and the decimation of production.
“The much touted ZimAsset has been a monumental failure. The economy cannot be rigged. Confidence is at its lowest level. Very soon the ZANU-PF government will start printing money again. There will be a run down on deposits followed by capital flight……..
“The next looming disaster is that government will not be able to pay salaries and other transfers in May 2016. Faced with this crisis, government is likely going to completely de-dollarize by December 2016. This will plunge Zimbabwe back to the era of hyperinflation.”
The bond notes are now in circulation but contrary to Mashakada’s views, Fidelity Printers is not rolling out the bond notes. At least, that is what we have been told. And it is very unlikely that Zimbabwe will be completely de-dollarised by the end of this month. For now, bond notes have not yet flooded the market.
Central Bank governor John Mangudya and Finance Minister Patrick Chinamasa seem to be quite aware of what they are facing. They were judged to have failed before they had even started. So they have a point to prove.
More importantly, God could be on their side.
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