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| The Zimbabwean Bond note |
When in 2014 the then Zimbabwean
government under the former President Mugabe introduced the bond coins in the
pretext of providing change, little did Zimbabweans realize that it was the
beginning of the disappearance of the United States dollar (USD) which people
had gotten so accustomed to.
By November 2016 when the 2 Bond note was
introduced to be followed by the 5 Bond note a month later, the USD effectively
disappeared.
At first, withdrawals were half-bond,
half-USD, and thereafter subsequently dwindled until they were all bonds.
Interestingly to note was that Bond and
USD withdrawals were done separately.
The Bond withdrawals were done using a withdrawal
slip while the USD withdrawal was done using the ATM card. Later on, all this
disappeared and everything was collated together into bond notes.
For good measure, the Bond and USD was
pegged at 1:1 so that it appeared natural for one to buy using a USD10 and above
to be changed using the Bond.
However, under little circumstances
could one get a USD change having bought using a Bond note.
This was day light robbery.
Later on, supermarkets were seen hoarding
the USD and slowly but surely, the USD disappeared from the market and became a
scarce commodity for the general populace but a preserve for Osipatheleni
(illegal money changers) and top government officials and those with such
mentality.
Over time, the general populace got the
shock of their life to realize that all their hard earned forex had turned into
Bond notes.
At this juncture I shall remind the
readers of this blog that to open those accounts people had used forex and they
were therefore foreign currency accounts. But later on the account holders were
told that those accounts were no longer forex accounts but had become Bond
notes accounts. As to how they had overnight transformed into Bond notes only
accounts, it is only Mangudya and the top ZANU-PF officials who know.
People were then told to open fresh
accounts of forex called Foreign Currency Accounts (FCA) commonly known as the
Nostro Accounts.
What is important however is to note
that in each transitional period, the government most likely stole large sums
of money from the poor masses. To prove that, one can make reference to the
USD10 million dollars that was recovered by the soldiers from Ignatious Chombo’s
house or the millions recovered at Kudzanayi Chipang’s house during Operation
Restore Legacy in November 2017 but whose fate was never made public.
One may not be far from the truth to
conclude that the money that was stolen during that period may actually be the
same money that was given to the illegal money changers (Osiphathelani) whom
most of the unverified reports claim they are linked to top government officials.
From the above, it becomes substantial
to conclude that more than a result of carelessness; the Zimbabwean economic
crisis was most likely a deliberate creation by the government so that it legitimizes
its ways of stealing from the general populace and I hereby hold it responsible
for the long suffering of the Zimbabwean people.
Moving on, and fast-forwarding to the 24
June 2019 banning of the multi-currency regime, it is not any different and the
stealing is going to be massive this time around.
According to the Statutory Instrument142 of 2019, the government through the Reserve Bank banned the use of forex as
legal tender in Zimbabwe.
In this blog however, I do not detail
all the contents of S.I. 142 of 2019.
My main interest however is Section 3
(1) (a) and (b) of the instrument.
It reads: 3 (1) Nothing in section 2
shall affect –
(a)
The opening or operation of foreign currency designated accounts, otherwise
known as “Nostro FCA accounts”, which shall continue to be designated in the
foreign currencies with which they are opened and in which they are operated,
nor shall section 2 affect the making of foreign payments from such accounts;
(b)
The requirement to pay in any of the foreign currencies referred to in section
2(1) duties of customs in terms of the Customs and Excise Act [Chapter 23:02]
that are payable on the importation of goods specified under that Act to be
luxury goods, or, in respect of such goods, to pay any import or value added
tax in any of the foreign currencies referred to in section 2(1) as required by
or under the Value Added Tax Act [Chapter 23:12 ].
Looking at the above, in all legal terms
and honest, the act sounds good and promising, giving hope to the Nostro
account holders.
But it coming from a government which is
not known for keeping promises, it is only a matter of time before the Nostro
account holders cry foul.
Again one will not be far from the truth
to conclude that just like the introduction of bond notes in 2014, or any other
financial/monetary policy before that or thereafter, this is just another way
of this government to symphony money that they never worked for and that they
do not deserve.
It was going to be better if the stolen money
could be used to bring this tottering economy back to its feet but knowing the
traits of those in charge, the money will be channeled to self-enrichment and
other nonsensical ventures.
My point is that the earlier you
withdraw your forex from these unreliable banks the better; and the earlier you
caution those who are sending you forex to stop sending it the best. Zimbabwe
should have its Zim-dollar than to reap where it did not sow.
In a nutshell, the black market is there
to stay until this government completely reforms (if ever they are willing to).
As a parting shot, Osiphatheleni are
there to stay as long as things are like this. It needs proper, serious and
well-thought reforms, not these piecemeal and haphazard temporary measures that
will do nothing than worsening a situation already in decaying stage.
What Zimbabweans are rejecting is not
the Zimbabwean dollar but useless money that does not buy anything and useless policies
that are meant to enrich a few individuals and leave the masses suffering.
