Govt must demonetize bond notes immediately and ring fence USD bank balances says Biti

Former Minister of Finance Tendai Biti has called on the government to immediately demonetize bond notes and to ring fence all bank balances which are in United States dollars to preserve the value. Biti also called on the government to promote the use of electronic money to counter the liquidity challenges. Biti said this during his state of the economy address yesterday. Said Biti

It is our respectful contention that the government must immediately demonetise the bond note. We contend that the myth of RTGS and use of plastic money can be adequate to resolve the challenges of cash as a medium of exchange within the four corners of Zimbabwe.

We demand that all current balances in the people’s bank accounts, which are indexed in US dollars and not bond notes, must be ring-fenced immediately, to protect the same against the vagaries of the returning high inflation and multiple exchange rates.

More: NewsDay