Mangudya clarifies how bond notes will be issued to the public. Says RBZ cannot issue

In e-mailed responses to questions sent by New Ziana, Reserve Bank of Zimbabwe governor, Dr John Mangudya, said bond notes will not go beyond the $200 million cap given that each bank will reconcile exports receipts coming through their customers’ accounts with the amount due as given in the policy. He also clarified how bond notes will be issued to the public and said they will be issued through banks.

In his responses Mangudya said,

There is no excess allocation possible under the scheme, given that each bank will reconcile exports receipts coming through their customers’ accounts with the amount due to them in bond notes as per the policy. Bond notes will be issued through banks against receipt of foreign exchange from the export of goods and services, including Diaspora remittances. It is, therefore, a performance-based scheme where the Government is not involved. Banks are the prime movers of this scheme. Bond notes derive their value from the Counter-Cyclical Export Finance Facility which caps the amount. The central bank cannot issue bond notes in excess of that amount. The central bank cannot issue bond notes when there are no exports. The partners involved are reputable institutions who have a name and international rating and reputation to protect.

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