The Bond Note Did Not Fail, It Was The Economy That Failed – Mangudya

Reserve Bank of Zimbabwe governor John Mangudya said that the bond note did not fail.

When Mangudya introduced the surrogate currency in 2016, he promised to resign if it failed.

Speaking before the Tendai Biti-chaired Parliamentary Public Accounts Committee hearing on Monday to discuss Zimbabwe Assurance Management company (ZAMCO) debts, government overdraft facility with RBZ and value of bond notes, Mangudya insisted that the fiat currency did not fail. He said:

The bond note did not fail, it was an export incentive and it pushed exports.

What failed is the economy, due to excess government expenditure. We now had excess funds in the economy and couldn’t maintain parity between the bond note and the United States dollar.

Mangudya revealed that the Central bank was left with only US$500 million in its coffers.

More: Zim Morning Post

Tendai BitiBond NotesJohn Mangudya

Tendai Laxton Biti is a politician and currently one of the 3 Vice Presidents of the Movement for Democratic Change (MDC). He was elected the vice presidency in May 2019 at the MDC Congress. Biti is also one of Zimbabwe's most prominent lawyers. Biti is... Read More About Tendai Biti

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

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

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