The Zimbabwean government has changed its tone on bond notes acceptance by businesses, creditors and everyone else ‑ from coaxing to coercion.
When Reserve Bank of Zimbabwe governor John Mangudya presented the mid-term monetary policy statement in September this year, he said no one would be forced to accept the bond notes.
He said: “It is also important to note that bond notes shall not be forced on people who do not like them. The [Reserve] Bank has heard and taken note of the public’s concerns, fear, anxiety and scepticism of bond notes, which all boils down to the general lack of trust and confidence within the economy. The Bank is addressing the concerns by planning to introduce smaller denominations of bond notes of $2 and $5.”
In July this year, finance and economic development minister Patrick Chinamasa was quoted in the media as having told legislators that Zimbabweans would not be forced at gun point to use the bond notes.
Online media quoted Chinamasa as having said that when the South African rand was rejected, monetary authorities did not force anyone to use it.
“Please get it clear, the bond notes are coming . . . those who do not want to use them, are free not to. There is choice always. You know you refused to use the rand and no one came with a gun to your head to say use them,” he was quoted as saying.
But the Treasury chief seems to have changed his tune somewhat from earlier stances after he was quoted by State media on Monday as saying creditors were compelled [by law] to accept payment in bond notes.
“If one owes you money in United States dollars, you must accept payment in bond notes. You cannot refuse. One would have discharged his or her obligation to you,” Chinamasa was quoted as having said.
Zimbabwe uses a multi-currency system, where anyone can make transactions in the South African rand, the Botswana pula, the United States dollar, the British pound and the European Union euro. The Indian rupee, the Australian dollar, the Japanese yen, the Chinese yuan as well as the local bond coin are also acceptable legal tenders.
Monetary authorities say the bond notes are backed up by a US$200 million African Export Import Bank loan facility and will be at par with the US dollar.
The bond notes will be first introduced in $2 and $5 denominations before $10 and $20 notes are rolled out later.
By end of December 2016, bond notes worth US$75 million should have been introduced.
