adminPost Reporter
THE Confederation of Zimbabwe Industries has welcomed the introduction of bond notes, saying they will go a long way in addressing the economic challenges gripping the nation.
This comes after the Reserve Bank of Zimbabwe on Wednesday announced that bond notes would be introduced within the next two months to arrest the current cash crisis as well as curb money flowing out of the country.
CZI Manicaland chairman, Mr Richard Chiwandire said that on the socio-economic front, the bond notes, just like the bond coins would help alleviate the cash crisis of withdrawal limits. He added that to create confidence, the $200 million Afreximbank facility was crucial.
“There is need for Government to come up with pro-business reforms to attract FDI such as bond notes with real value like the Afreximbank facility. Otherwise the notes will face resistance on the market as people will assume it is just printed paper, the same fate the bond coins experienced on their introduction,” said Mr Chiwandire.
Development economist, Mr Prosper Chitambara, said the introduction of the bond notes was a positive development, but would not solve the underpinning challenges gripping the economy.
“This will definitely assist as a temporary relief to deal with the cash squeeze, but Government needs to deal with the fundamental issues that are holding back the economic growth,” said Mr Chitambara.
He said the high import bill by both Government and the private sector was now coming back to haunt the economy.
“We need to increase production in the country and enhance competitiveness of locally produced goods. We will also need to buy local goods and circulate cash within the country,” he said. Dr Mangudya also announced that daily maximum withdrawals has been pegged at 1 000 for US dollar and Euro and 20 000 for rands.
Maximum cash that can be taken out of the country has also been reduced to 1 000 for US dollar and Euro and 20 000 for rands with immediate effect.
Online Reporter