We won’t be liable for bond note public acceptance, CZI says

Confederation of Zimbabwe Industries (CZI) says it will not be held liable for the public’s acceptance of the new bond notes to be introduced later this month.

The Reserve Bank Governor Mr John Mangudya said US$75 million worthy of bond notes will be introduced end of October and a board will be set up to manage them but skeptic views on the notes are ruling public opinion in fear of the 2008 bearer’s cheques era recurrence.

Speaking during a CZI president’s round table briefing held at the The Village Lodge in Gweru last week, CZI National President Mr Busisa Moyo said as long as government sticks to its promises, the business community will use the notes but will not be held accountable for the public’s acceptance.

“As long as government doesn’t violet its own promises then we are fine, but we are watching.

“The government has promised a board to manage our bond notes, if nobody is forced to accept them and they are not compulsory then we are okay.

“As business we will use anything as long as it is accepted but while we accept them we will not be held responsible for the acceptance of the public,” he said.

Moyo said the notes are a logical move by government since it has run-out of borrowing options thus has to print its own currency.

He added that the notes will be used in the change category for functional purposes and not big business transactions or salary payments.

“The denominations are $2 and 5$ notes and as I have responded to this before, this falls into the change category, your functional notes, because I don’t see somebody being paid his US$300 salary on $2 notes,” he said.

As long as the multi-currency system is maintained and retailers and traders are free to choose what to accept and what not to, as Moyo says, the introduction of the bond notes will be a non-event no matter what quantities are injected into the system.

He said the only calamity will be if government bans the multi-currency system which will lead to inflation and no one wants that, the ‘memories of 2008 are still too fresh’.

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