Zim's VP suggests bond notes will be 'a currency', contradicting Central Bank - Report

2016-10-07 14:43
Emmerson Mnangagwa. (File: AFP)

Emmerson Mnangagwa. (File: AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Harare - So who do you believe?

Zimbabwe's vice president Emmerson Mnangagwa has just undone weeks of careful PR by the beleaguered central bank chief by saying the about-to-be-introduced bond notes will be a currency, if a report by the official Herald newspaper is to be believed.

Faced with mounting public resistance to the notes, Reserve Bank Chief John Mangudya has frantically been trying to back-pedal. In recent days, he's told sceptical Zimbabweans that the bond notes are just an export incentive and they'll only encounter them in the form of change.

That is not what Mnangagwa, touted as a possible successor to President Robert Mugabe is saying.

With memories fresh of the havoc wreaked by the country's last "currency" - notes known as bearer cheques that were printed in denominations of millions, billions and trillions of dollars - Zimbabweans are reluctant to embrace this new project. There are claims that businesses are minimising their exposure to loss by keeping as little money in their accounts as possible, for fear that it will only be issued to them as bond notes.

Mode of transaction 

Spoof versions of the new notes have been mocked up by the #ThisFlag  movement, with protest pastor Evan Mawarire suggesting in a tweet on Thursday they will be used to pay police fines and army salaries.

The Herald quoted the vice president on Friday as saying: "We need a mode of transaction which we can control in the country on the basis of security provided by the [African Export-Import] Bank 200 million."

This was a reference to a claim that the notes are to be backed by a $200m facility from this bank. Mnangagwa is reported to have stressed that bond notes mean Zimbabwe "will be able to have a currency that circulates within its jurisdiction".

The Zimbabwe Independent said on Friday that the African Export-Import Bank had not made public the terms of the facility, as it has done in the past with similar facilities extended to Zimbabwe. When reporter Bernard Mpofu telephoned Mangudya, he was reportedly told that his questions "did not help anyone".

Mnangagwa said a legal framework for the notes was being worked out. The constitutional court has said the notes cannot be challenged in court until laws governing their introduction are in place.

Read more on:    john mangudya  |  emmerson mnangagwa  |  zimbabwe  |  southern africa

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24


5 top leg exercises for men

Here’s our selection of the five best leg exercises that you can do in the comfort of your own home.


You won't want to miss...

10 best dressed men of 2017
How to open a beer bottle without an opener
WATCH: Man films himself going down water slide upside down as things go very wrong…
WATCH: Conor McGregor: Notorious the trailer
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.