"Zimbabwe Will Not Adopt S.A Rand Over Bond Notes"

Published: 2016 June 24 05:33:13 (1885 Views)


Zimbabwe will not be joining other countries in Southern Africa which have adopted the South African rand as the sole official trading unit, Finance and Economic Development Minister Patrick Chinamasa has revealed.

Chinamasa said the rand was already in the multi-currency basket, hence it had to be used like any other units.

He was presenting a ministerial statement on the state of the economy and the pending introduction of bond notes.

“Further, there have been calls for the adoption of South African rand as the transacting currency by many people. The rand remains part and parcel of the multi-currency system and economic players are free to switch to any currency as a way of managing their operations. We do not intend to adopt a single currency, but we will continue to bolster the strength of the multi-currency system,” said Minister Chinamasa.

He said bond notes would not be imposed on anyone who did not intend to use them.

Chinamasa was responding to fears that the introduction of bond notes would signal the return of the Zimbabwe dollar.

“It is also important to note that bond notes will not be forced to people who don’t like them especially if you are not an exporter. It does not mark the return of the Zimbabwe dollar because key fundamentals are not yet present,” he said.

“The issuance of bond notes has self control mechanism in that where there are no exports there are no bond notes. In other words the bond notes are issued relative to the volume of exports. The bond notes will be gradually be released into the economy in sympathy with export receipts through a normal banking channel up a maximum ceiling of the facility of $200 million. The ceiling will be attained when total exports are around $6 billion. Currently our exports are $3 billion something that I worry about because we are very low when compared to other countries,” said Minister Chinamasa.

He said while the Reserve Bank of Zimbabwe was monitoring depositing trends of some businesses as a way of ensuring that they deposited all their monies in financial institutions, the initial objective was not to close businesses.

He said businesses that did not deposit their money would be explained of that legal requirement in a “market friendly way,” and the law would only be invoked if that did not produce desired results.

“We do not intend to close any shop. We will explain to them only if they do not comply will we descend heavily on them,” said Minister Chinamasa.

He said more than 17 400 point of sales had already been set up in various businesses as way of encouraging use of plastic money.



- Herald
Tags: Chinamasa, Rand, bondnotes, ,
 0

You May Like These Videos

Comments

| Comment With Facebook Submit

There are no comments.

Big Reads

Pictures show fuel tankers offloading fuel in the bush

by Moses Zhou | 2019 August 13 07:53:37

Schoolgirl drops out after continuous 'sexual abuse' by teacher

by Staff Reporter | 2019 August 13 07:42:33

Bulawayo prostitutes dollarise

by Staff Reporter | 2018 December 01 00:43:29

DRAMA as mourners fight over deceased loan sharks' loot

by B-Metro | 2018 November 30 23:35:19

'Tsvangirai's ex' on police wanted list

by B-Metro | 2018 October 19 12:39:23

Dumped man glasses wife's face with broken beer bottle

by Staff Writer | 2018 October 19 12:32:05

Zimbabwe prostitutes hike prices

by Zimbabwe prostitutes hike prices | 2018 October 18 17:13:08

Pastor shocks female congregant with new panties

by Metro Writer | 2017 March 28 10:50:44

Harare man steals 10kg mealie meal from neighbour

by Court Reporter | 2017 March 28 07:56:29

Four company directors die in Vumba Mountain plane crash

by Staff Writer | 2017 March 28 07:38:59

Man with 'deformed' body bashes parents

by Staff Writer | 2017 March 24 09:48:46

Mugabe Knows Nothing About The Zimbabwe Constitution: MP

by Staff Reporter | 2016 October 01 08:12:02

Troubled Harare Giants Dynamos Falls Into Another Deep Crisis

by Own Correspondent | 2016 October 01 07:49:17

Shock As Local Bank Denies 'Rich' Mugabe's Son Heifty Credit

by Own Correspondent | 2016 September 30 19:14:54

Mugabe "Home Coming" And "Thank You" Rally On Cards

by Own Correspondent | 2016 September 23 06:48:24

Prof Moyo Was Dumped By Western Embassies, Claims Mutsvangwa

by Staff Reporter | 2016 September 22 10:08:07

Prof Jonathan Moyo In Fresh Beef With War Vets

by Own Correspondent | 2016 September 22 07:48:10

You Are Too Old To Lead, Aging Zim President Mugabe Told

by Own Correspondent | 2016 September 22 07:19:25

Younger Lover Beats Up Sugar Mama For Cheating

by Own Correspondent | 2016 September 20 03:21:43

Anti-Corruption Commission Loses Property In Failed Probe

by Own Correspondent | 2016 September 20 03:18:19

Mutsvangwa's Son Caught Up In Rape Case

by Own Correspondent | 2016 September 20 01:24:00

REMAINING PSL FIXTURES: ONLY 7 WEEKS LEFT

by Sports Correspondent | 2016 September 20 01:21:33

Victims Involved In Horror Crash Named

by Own Correspondent | 2016 September 20 01:16:09

Man Kills Uncle For Taking Him To Prophet

by Own Correspondent | 2016 September 20 01:11:08

Mphoko Threatens Zimra Over Irregular Taxes

by Own Correspondent | 2016 September 20 01:07:44

China Pours $46m On New Parliament Construction

by Own Correspondent | 2016 September 20 01:05:11

SHOCKING:14 Year Old HIV-Positive Boy Rapes 7 Pupils

by Own Correspondent | 2016 September 20 00:04:55

Tajamuka Slams Zimpapers, Fumes Over

by Own Correspondent | 2016 September 19 11:56:42

Mthwakazi Activists Torment Mujuru

by News Editor | 2016 September 19 10:52:58

We Did Not Fire Live Bullets: Police

by Staff Reporter | 2016 September 19 08:09:20

Ruling On 58 Protesters Expected Today 



by Court Reporter | 2016 September 19 08:10:40

6 Zanu PF Youths Nabbed For Assaulting Cops

by Court Reporter | 2016 September 19 08:11:50

Mutare Con-artist Cracks Zanu PF

by Own Correspondent | 2016 September 19 08:13:32

MSU Student Caught Peddling Drugs Tor Tuition Fees

by Own Correspondent | 2016 September 19 05:29:18

ZIMRA Dishes Out Rewards To Faithful Tax Payers

by Own Correspondent | 2016 September 19 05:24:19

Headmaster ‘Steals’ $17 000 From School's Fees

by Own Correspondent | 2016 September 19 05:21:24

Mujuru Party Fails To Pay $15 000 For Printed T-shirts

by Own Correspondent | 2016 September 19 05:14:37