The RBZ has said that they are adding another $300 million worth of bond notes (I call them notes of bondage) by the end of November. They say this is again supported by another facility from the African Export and Import Bank (Afreximbank).
Perhaps Ignatius Chombo, the new minister of finance (it still surprises me) has seen how huge a success the notes of bondage have been. To those who may catch on slow, I was just being sarcastic: bond notes have not succeeded.
Have they failed though?
I don’t know if they have failed. They held their own. For some weeks following their introduction they kind of maintained a 1:1 parity with the USD. As predicted though they started falling in value against the USD. This led to the government outlawing the exchange of currencies on the streets or any other place except designated places where it is claimed you can exchange the notes of bondage at 1:1 with the USD.
However, the bond note is valued higher than money in your bank account. This is a bit confusing, why is it like that? This is because when all of us expected the government to print more of the bond notes (unbacked by any Afreximbank money) thus devaluing the notes. The government may not have done this (we can’t be sure they didn’t). They duped us and did worse: they printed numbers into our bank accounts.
The government just invented bank balances and overnight our hard earned money within the banking system was left worthless. The bond notes might have succeeded in hoodwinking us as the real printing of money was happening. Success is always measured against the original intention. Maybe we thought the intention was for the cash crisis to be brought under control while the government knew all along that this was just to steal our hard currency which they did.
Bond notes are still an export incentive
The RBZ still insists that the bond notes including the more that are on the way are an export incentive. I don’t know what that really means hey, I never did. Maybe the clever community here on Techzim can help me understand how the notes of bondage are an export incentive
Bond notes might have succeeded
Maybe it was fake news but I heard that RBZ governor, John Mangudya declared that he would resign if bond notes failed. The man is still in office so it therefore means the notes did not fail. They may not have succeeded but surely if they had failed VaMangudya would have resigned. Instead he is printing more…
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