Well, Christmas is coming twice this year. Thanks to the RBZ Governer Dr. Mangudya for presenting earlier on the onset of this month that on the 18th of December the nation should brace to grace a solution to liquidity woes that had already mounted to the summit. I understand the bond coins have been received with mixed feelings, and I also understand people subscribe to different opinions to every subject matter the above included. If there is something which I hate with passion is to encounter someone who critic things by taking sides. I do hate such conspiracies because I understand individuals who always do that are guided by dogmatism and whichever seems to be diverging from what they believe they then rule out as a fallacy. I love people who are analytical and they are those who approach every situation with indifference till they establish all facts for them to make a conclusion or thereof to make an assertion. Before, I give my own view on the above matter let me share with you what Amelia Johnson had to gather on the same by quoting her full text. Government Plans to Raid U.S. Dollars in Banks By Amelia Johnson| Now Daily| The bankrupt Zimbabwean government of president Robert Mugabe has hatched a secret plan to raid the U.S. dollar accounts of citizens and give the owners worthless coins. Central bank governor John Mangudya announced Friday that the ‘special bond coins’ would go into circulation on December 18. What the governor did not tell the public, government insiders told Now Daily, is that on the same day, Mangudya will also announce that account holders will no longer be permitted to withdraw more than $200 at a time. Mangudya claimed the coins would be a “good store for value”, a claim dismissed by economists as false. “These coins will only be accepted as currency in Zimbabwe. Why would that be if the coins are at par with U.S. currency?” queried economist Phillip Maregere of FMG Capital in Johannesburg. “There is no law which says banks are under obligation to exchange the coins for U.S. dollars, or that the RBZ will immediately compensate the banks for their trouble. Mangudya may have sugar-coated bringing in the coins with good intentions, it may even look good on paper, but implementation will be problematic.” Government sources said the Reserve Bank will create artificial shortages of U.S. dollars to make businesses accept the so-called ‘bond coins’ or centavos as some now call them. “If you have any foreign currency in the bank, now is the time to take it all out, before the withdrawal limits are imposed. A lot of people are going to lose money in the banks when the accounts are frozen. This has happened before, when Gono slashed the zeroes and when Zimdollars were rendered worthless upon adoption of the multi-currency regime,” said a senior government source. (c) 2014 Now Daily. All Rights Reserved. Allow me then to express my opinion on the ascertained views as substantially wrong mainly on the basis that, the coins as they are presented are not worthless as been said in the analysis. For such a long time it has been a norm here in Zimbabwe that due to shortage of coins we had an option that we can be issued with credit notes which I do equate to the same bond coins as not different in functionality. Therefore, if it is tried and tested that the system works on a micro basis then it will also function the same on a macro basis and the coins will be able to carry the same value compared to the paper note we used to carry and somehow it had the potential to wear and deteriorate before you even used it. Lets take as an example that we have 500 supermarkets in Zimbabwe and each of them issues 50 credit notes a day on an average price of 15 cents, then it means monthly they are borrowing $112 500 without our knowledge. Now that our government through the RBZ is thinking of doing the same we then open eyes and say its bad because we lack trust on it i bet. Yeah,,, in terms of trust I sympathize and bear with you the people of Zimbabwe that yes the money has to be used on good, progressive and building oriented platforms. We should be busy now trying to advise our government on the best way to use the money in a way that the situation ever changes we should not be found in a precarious position. One thing I am very much against myself is to be told that the money was raised to pay salaries or to pay up government debt. Let me take this time again to share with you If I was part of the team propelling the programme, what I would suggest the money be used for. Firstly, maybe for the establishment of the State Sovereign Fund starting with the $10 000 000 would make some sense and invest in some of the risk proof investments in Zimbabwe and abroad. This will only keep the fund growing and more other ways of raising more capital will come. The other option is to restore the lender of last resort functionality of the RBZ and this would go a long way in solving liquidity challenges and I believe thats the major reason you issued the coins. Then my last shared opinion is to invest in startups by working hand in hand with incubators and accelerators or investing in some of the informal business that have a future and potential. Let me also hail whoever who is behind the idea for taking the decision to start with only $10 000 000 I am sure this will give room to appraise the project as we go on. Liquidity is a real issue we are facing as a nation and without finding new ways to inject fresh capital and at the same time managing currency risk we can not expand the economy...
Posted on: Tue, 09 Dec 2014 14:00:29 +0000
Trending Topics
Recently Viewed Topics
© 2015