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.

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.


Zimbabwe bond notes 'worthless as soon as released', says MDC official

17 August 2016, 15:35News24 Correspondent

Harare - Zimbabwe could be stacking up its new bank notes to a value of $2.5 billion but they will lose their value almost as soon as they're released onto the market, a senior Movement for Democratic Change (MDC) official has claimed.

Reserve Bank of Zimbabwe governor John Mangudya has always maintained that the bond notes - supposed to be on a 1:1 parity with the US dollar - are to be paid out as an incentive to exporters and will not have a total value of more than $200 million.

But Eddie Cross, who sits on parliament's budget and finance committee, and is the opposition's shadow minister for local government, told News24 in an interview: "$200 million would not even touch sides."

Cross claimed sources at the RBZ gave him the $2.5 billion figure. He said it would be needed to restore liquidity to the market. "But the moment it [bond notes] is issued, it will be worthless," he said. His figure would be hotly contested by the central bank chief who at the end of last month urged Zimbabwean businesses to set up an independent commission to make sure there was no "overprinting."

Officially the release date for the notes was around October. Coincidentally, a senior labour ministry official Simon Masanga told the Chronicle newspaper last week that payment of salaries to Zimbabwe's civil servants would normalise "two or three months from now".

Church leaders 

Cash shortages have led to repeated delays in salary payments and to tight caps on the amount of money Zimbabweans are allowed to withdraw from their accounts. Some banks only allow clients to take out $50.

"Pretty soon when you go to the ATM it'll spew out bond-notes," Cross said, claiming "paper money" had already been printed and was sitting in warehouses. Given widespread resistance to the notes from ordinary Zimbabweans, the authorities may be delaying their release because they were terrified of what will happen, Cross alleged.

Memories were still fresh of unchecked banknote printing during the pre-2008 hyperinflation era. Few believed President Robert Mugabe's government would stick to the publicised $200 million limit. Mangudya claimed that the notes would be backed by an African Export-Import Bank facility. Zimbabweans demanded proof of this.

State media on Wednesday quoted the head of the Apostolic Churches Council of Zimbabwe Johannes Ndanga as urging Zimbabweans to accept bond notes "while challenges in the country are being fixed". Other church leaders have spoken out against the notes.

The use of plastic money surged by 400% between May and June, according to Finance Minister Patrick Chinamasa recently. 

Calls for Zimbabweans to use the South African rand instead have not been well received. Though large supermarkets would accept foreign currencies apart from the US dollar (adopted as legal tender in early 2009), smaller stores do not. 

- News24


Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...