Finance Minister Patrick Chinamasa was yesterday quizzed about the government’s intention to introduce bond notes, which most people seem to be against, but he insisted they were the best solution for Zimbabwe to recover because they basically served two purposes.
“The bond notes are primarily seeking to achieve two purposes. Primarily, as an incentive for exports, because all of us are earning money in US dollars which we do not make unless we are exporters. So, in order to ensure that there is great availability of foreign currency, we have to incentivise those who make exports so that the availability is enhanced,” Chinamasa said in response to a question from Movement for Democratic Change Shadow Minister for Finance Tapiwa Mashakada.
“The other purpose of bond notes is basically to avoid capital flight or leakages. I can say Mr. Speaker Sir, that if we brought in US$3 billion now into this market, it will all go like through a sieve out of the country and that we cannot afford.”
Chinamasa said it was important for Zimbabweans to be aware that the World Bank, the International Monetary Fund and the African Development Bank, which can open doors for Zimbabwe to get financing, are not a panacea of Zimbabwe’s economic challenges.
“The responsibility is on us to do the right things so that we create an environment which is conducive for both domestic and foreign investment,” he said.
“We have to restore discipline in everything that we do. For me, that is the primary consideration. Outsiders yes, they will come but they will only come to complement our own efforts.”
On confidence, Chinamasa said Zimbabweans had to have confidence in their own government and what it as doing because a currency, including the United States dollar had no intrinsic value.
“The Hon. Member is correct that the value of any currency is supported by confidence and that is the case with the United States dollar. It has no intrinsic value, it is what they call a fiat currency, just by order to say; this is a currency and everybody accepts it,” Chinamasa said in response to a question by Binga North legislator Prince Sibanda.
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