Bond notes have been successful, Mangudya

RBZ governor John Mangudya

RBZ governor John Mangudya

Harare Bureau
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya says bond notes have been successful since they have helped companies to increase both production and exports.

Dr Mangudya said this when he appeared before the Parliamentary Committee on Finance and Economic Development yesterday.

The introduction of bond notes in 2016, he said, was not meant to deal with cash shortages.

“I said when bond notes fail to support export incentives in this country, I would resign and you know we have many companies that we have been resuscitated, and I can mention them,” he said.

He said the bond notes had materially impacted on the fortunes of companies such as Tregers, Paramount Garments, Lobels and Mega Pack, Arenel and Zimplow.

“What the people were ascribing to, which I do pray to honourable MPs not to do, is to say that it has failed to remove queues in the banks.

“Once you do that, you are saying print more. But what we are saying is our bond notes are governed as a proportion of exports, so when I say bond notes, I celebrate because I see the image of exports, it is a brilliant mechanism,” he added.

Dr Mangudya said he would provide Parliament with a schedule of the companies that had benefitted from the export incentives, including the demonstrable growth in exports since the introduction of bond notes.

“I haven’t resigned because the bond notes have succeeded in helping the companies in Zimbabwe to be resuscitated,” Dr Mangudya said.

He added that bond notes will be in use until Government reintroduces the local currency.

The parallel market for foreign currency, he said, was a result of high demand.

The central bank chief said there are currently more than $290 bond notes in circulation.

Dr Mangudya also welcomed the passing of the Finance Bill by Parliament, saying it would help deal with errant dealers who are involved in multi-tiered pricing.

The Bill is now awaiting Presidential assent.

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  • Ras Bona Mug

    You failed John!Rovai pasi baba.Which companies were revived in this dead economy? When did you last walk in the street John?wake up from that deceptive dream and face reality!!

  • Samaritan

    Eish,, so if these guys see success in this misery we are in it means they wont hear the cry to solve it economy. Mangudya is an EDiot,, he might have helped a couple of companies but a dozen with a combined value of more than those two closed. Its like trying to save $15 from 2 companies by sacrificing a dozen of companies worth $120 and call that progress

  • Joy

    Do we have alternatives readily available except for the bond note or coins?

  • God of War

    This guy is a dog. A child of a witch. Who does he think he is kidding.

    • zibulo

      kkkkkkkk god is really angry, yes he angers every one, me too

  • Duri

    Ibvaapo iwe John!

  • Zimbabwean

    These are the kind of pple vanoshoresa ZANU PF, admit that bond notes failed and take corrective measures.