Removing Bond Notes Not The Solution, RTGS Balances Are The Problem- Mangudya

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Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya yesterday said removing bond notes will not solve problems facing the economy.

Addressing delegates attending the 2019 pre-budget seminar in Bulawayo, Mangudya said the problem is $10 billion electronic balances at banks, which are not backed by real money. Said Mangudya:

In that amount only 4,5 percent are coins and notes, which is your bond notes and coins… therefore, if we remove them they won’t resolve the problem. The problem is about the 95,5 percent held as RTGS balances in your accounts. Where is it coming from? So, the question which we should be asking ourselves is where is this money coming from? That’s why we need to plug the holes not from the medium of exchange that you have taken away from the bank. The money in your account didn’t come from bond notes, not at all.


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John MangudyaBond Notes

John Panonetsa Mangudya is an economist and the current Reserve Bank of Zimbabwe governor. Mangudya, who sits on many local and international boards .He was made RBZ governor after the expiry of Gideon Gono's term in 2014. He had been CBZ Holdings Ltd Chief Executive... Read More About John Mangudya

Bond Notes are a currency of notes backed by a bond that the Zimbabwe government announced on 4 May 2016 by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya. The $2 denomination of the notes was finally introduced on 28 November 2016. More notes were... Read More About Bond Notes

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2 comments

  1. Jojo Reply

    Those balances emanate from your unlimited printing of bond notes beyond 200 million initial limit and who can you lay the blame on that except yourself and your associates as you printed those bond notes to wipe out our US dollars and replace them with your useless tissue paper. U are wicked you ZANU people.

  2. Aisha Reply

    Pls do something about it everyone using u.s as not everyone in zim had access to it with shops pegging high prices even in swipes its a problem for the masses .

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