The country’s surrogate
bond note currency has let the country down and those who imposed it on the
people should hang their heads in shame. That is the least they can do or, if
they still have any moral uprightness left, should apologise and resign. But
knowing them to be who they are, we dare not expect them to voluntarily abandon
the gravy train lest we get depressed by disappointment. The bond note was
introduced ostensibly to solve the severe shortage of the US dollar which was
then the dominant legal tender in the banks. The bond note was therefore
introduced, against widespread public sentiment, with Reserve Bank of Zimbabwe
(RBZ) governor John Mangudya as its proud groomsman. Two years down the line,
the US dollar is still in short supply and so is the bond which was supposed to
solve the problem in the first place. As if that was not a big enough failure,
the bond not has now severely weakened and wrought havoc on consumer prices.
Prices of goods have doubled and in some cases have trebled threefold. That is
the reason why it is only reasonable that the bond note is dumped immediately.
Prices would definitely come down if the real US dollar is restored as the only
legal tender alongside other dependable currencies like the South African rand.
In such case, the US dollar would still remain in short supply yes, but is the
inflationary bond note itself easily accessible? Would we not rather struggle
to get money that is reliable than struggle to get something as resented as the
bond note? The price of bread would hardly reach $1.50 in real US dollars terms
but right now, bakers are fighting to be allowed to charge their products as
they deem fit, something that would take the price of bread to $4.40 and
beyond. This is surely bound to happen unless the bond note is retired with
immediate effect. The market has made it clear that it does not want the bond
note and there is no wisdom in antagonising the market.
bond note currency has let the country down and those who imposed it on the
people should hang their heads in shame. That is the least they can do or, if
they still have any moral uprightness left, should apologise and resign. But
knowing them to be who they are, we dare not expect them to voluntarily abandon
the gravy train lest we get depressed by disappointment. The bond note was
introduced ostensibly to solve the severe shortage of the US dollar which was
then the dominant legal tender in the banks. The bond note was therefore
introduced, against widespread public sentiment, with Reserve Bank of Zimbabwe
(RBZ) governor John Mangudya as its proud groomsman. Two years down the line,
the US dollar is still in short supply and so is the bond which was supposed to
solve the problem in the first place. As if that was not a big enough failure,
the bond not has now severely weakened and wrought havoc on consumer prices.
Prices of goods have doubled and in some cases have trebled threefold. That is
the reason why it is only reasonable that the bond note is dumped immediately.
Prices would definitely come down if the real US dollar is restored as the only
legal tender alongside other dependable currencies like the South African rand.
In such case, the US dollar would still remain in short supply yes, but is the
inflationary bond note itself easily accessible? Would we not rather struggle
to get money that is reliable than struggle to get something as resented as the
bond note? The price of bread would hardly reach $1.50 in real US dollars terms
but right now, bakers are fighting to be allowed to charge their products as
they deem fit, something that would take the price of bread to $4.40 and
beyond. This is surely bound to happen unless the bond note is retired with
immediate effect. The market has made it clear that it does not want the bond
note and there is no wisdom in antagonising the market.
