EDITORIAL COMMENT: Censure businesses frustrating use of plastic money

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Bond notes worth $10 million were released onto the market last Monday and this has resulted in improved liquidity. What is however worrying is that we continue to have long queues at the banks.

This is probably because many depositors are yet to embrace the use of plastic money while others due to misinformation are withdrawing cash to hoard. The country’s detractors are vigorously campaigning against the use of bond notes and they are the ones who are deliberately misinforming members of the public. There are also some businesses that are frustrating the use of plastic money by demanding cash for goods and services.

The Reserve Bank of Zimbabwe should therefore come up with some mechanism to monitor such unscrupulous businesses which should be punished severely. Last Monday the central bank fined the People’s Own Savings Bank (POSB) $500 000 for violating the Banking Act after its employees leaked pictures showing bond notes in the bank’s vaults on social media.

The bank’s employees who committed the offence were immediately fired. It is such swift and decisive action that should be taken against all businesses that want to frustrate Government efforts to improve liquidity and save foreign currency. It is a fact that a lot of foreign currency was being smuggled out of the country hence the introduction of bond notes.

When Government introduced multi-currency in 2009, it did not put in place a system to control the externalisation of foreign currency and as a result many foreign companies and even individuals doing business in the country were shipping out foreign currency daily. This is the main reason why the country today is experiencing liquidity challenges.

Government in a bid to boost export earnings has introduced a five percent incentives. Under the system exporters are paid five percent bonus on their export earnings which is paid in bond notes. Those receiving money from relatives in the Diaspora are also paid a three percent incentive.

It is hoped that exporters and diaspora remittance’s incentives will encourage companies and individuals to bank their export earnings. The foreign currency earned through exports or diaspora remittances should be spent on importing essential commodities such as fuel, raw materials for industry as well as plant and equipment.

What Zimbabweans should appreciate is that it is not sustainable to use hard earned foreign currency for local transactions especially now that Government has introduced bond notes. The ideal situation is for the country to have its own currency and it is pleasing to note that Government is already working towards this. Government has however said it will not rush to introduce local currency.

It is therefore important for businesses and individuals to embrace the use of bond notes until such a time that Government introduces local currency. Members of the public should not hesitate to report businesses that refuse bond notes or payment through swipe machines.

We want to commend the media for exposing unscrupulous businesses that were either refusing bond notes or frustrating the use of plastic money.  Government on its part should ensure that only bond notes worth $200 million guaranteed by the $200 million AfreximBank facility are in circulation.

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