Retailers back bond notes

The Confederation of Zimbabwe Retailers this week said Zimbabweans should embrace bond notes, which are due for introduction this month as they will also go a long way in promoting local exports, in addition to easing the liquidity crunch.Introduction of the notes was mooted as part of measures to ease liquidity challenges as well as motivate exporters to sell more of their products outside the country to earn foreign currency.

In terms of the facility, the central bank will award exporters a bonus of between 2 and 5 percent of the value of total export receipts in bond notes, which will be credited to the exporters’ local bank accounts.

Confederation of Zimbabwe Retailers president Denford Mutashu said Zimbabweans should not be disheartened by the coming of bond notes.

“The bond notes are coming and our message from the Confederation of Zimbabwe Retailers is that let’s

all embrace them as they will go a long way in promoting exports so the country earns more foreign currency,” he said.

Mr Mutashu added, “There are also bright prospects to our local industry as the 5 percent export incentive will be reinvested in local production thereby improving capacity utilisation and create more jobs for Zimbabweans.”

He said Zimbabweans should not fear that bond notes would flood the country.

“This is not a fallacy but reality and all skepticism should be cleared by the fact that the bond notes are only a

very small fraction of the money in circulation, about less than 3 percent,” he said.

Between $3 billion and $7 billion is estimated to be circulating in the economy, with experts saying the bond notes total value was rather insignificant for the public to be worried about their effect.

The Reserve Bank of Zimbabwe has said the notes were being introduced as a tool to curb cash hoarding, externalisation and looting which has been the case with the United States dollar.

The central bank has since launched a massive campaign to raise public awareness on the bond notes, the reasons for introducing them and how they will function. — New Ziana.