Home » Industry » RBZ Boss Appeals to MPs Over Bond Coins

RESERVE Bank of Zimbabwe chief, John Mangudya, has pleaded with legislators to help encourage the use of bond coins saying they encourage competitiveness and a more realistic pricing regime in the economy.

“I believe, as MPs, you are more accessed by the people may you help us explain the bond coins to (them) and it is one decision that I am prepared to defend,” Mangudya told legislators Monday.

“I am aocating that prices go down and then our economy can expand, hence the introductions of bond coins.

“Let us take an example, if people were to sell their cabbages at 50 cents than selling at $1 for two, this would give the consumer more spending power to but milk and the economy grows.”

Following its rejection by Zimbabweans, the government was forced to ditch the worthless local dollar and officially endorse the widespread use of foreign currencies, principally the US greenback in 2009.

But while the paper US dollar bills have been readily available, the coins have proved hard to get, forcing retailers give customers sweets, chewing gum and pens in lieu of change.

To help ease the problem, Mangudya recently introduced the bond coins which have the same denominations and value as US cents but Zimbabweans are not convinced and many refuse to accept them, preferring the sweets.

On Monday Mangudya said the resistance was down perception challenges and urged legislators to help.

“This economy has been destroyed by perception and it is the duty and you as part of government, to assist in destroying that,” he said.

Locals fear the coins could be a first step towards the return of the dreaded Zimdollar and, with that, the horror of hyperinflation which reached 500 billion percent with prices changing more than twice a day.

Finance minister Patrick Chinamasa however, sought to calm the concern, insisting there would be no immediate return for the Zim dollar.

“We will not introduce any new currency in the near future until we have first demonetised the Zim dollar. We are pursuing it but, once again, it’s not a simple and straight forward matter,” said the minister.

Source : New Zimbabwe