MDC calls for scrapping of bond note in proposed alternative to revive Zimbabwe’s economy


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+++++++The Movement for Democratic Change has called for the scrapping of the bond note and the strengthening of multiple currencies as part of its proposed measures to stabilise the country’s economy which has been on a free-fall over the past week.

In a motion by Hatfield Member of Parliament Tapiwa Mashakada yesterday, the legislator said Zimbabwe at the moment had a combination of a broken economy and a broke government. But the main problem, he said, was policy bankruptcy.

“The state of the economy is almost like a depression. The economy is not growing. The prices are increasing; there are no jobs and so on and so forth. We are almost in a state of depression,” he said.

“What is the real problem Mr. Speaker Sir?  I think, at times policy bankruptcy can be a liability.

“If you have policy inertia, if you dither on policy, these problems will become unabated.  I will give you a good example, removing a Bond Note does not require money, it requires a bold policy choice, a bold policy decision.

“I thought when the new Minister was sworn in, he had stuck the right code when he said, he was going to remove the Bond Note.  Along the way, I do not know what had happened, he has stopped that.

“Joining the Rand monetary area, I will explain in detail on the alternatives, it requires a policy decision.

“Stopping Government borrowing from the Reserve Bank of Zimbabwe requires an immediate policy decision to stop the budget deficit.

“The stopping issuance of Treasury Bills is a policy decision.

“Revenue collection, right now, do you know Mr. Speaker that, uncollected revenue is now $4 billion in the market, almost equal to the Budget.  We need policies to revamp revenue collection measures, tighten your border ports so that there is no smuggling and there is no corruption.”

Zimbabwe has been plunged into serious shortages following the government’s announcement of a two cents per dollar tax on transactions and the re-introduction of foreign currency accounts last week.

There has been panic buying of fuel and basic commodities and the prices of some basic commodities have skyrocketed.

The bond note which is supposed to be at par with the United States dollar is now trading at almost 1 to four.

Below is Mashakada’s full motion:

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The Insider

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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