I had a meeting with the reserve bank of Zimbabwe governor where i told him that the idea of bond notes was a disaster.
They would actually, make things worse for our country.
I have been very clear on that.
What we need is a holistic solution for our country, what is the real problem. The problem is that we are not producing, so we are eating that we are not producing.
The answer is a supply side solution, not new money.
Our farms, mines, and industries that have been shut in Bulawayo, Harare and Mutare, have to work so we can move on.
We are in a recession, since 2012 the growth rate of our economy has been falling. Downward depression.
We are firmly back to 2007-2008 problem. We lost 60% of the value of economy in less than 11 years.
Regrettably Chinamasa(Zimbabwe Minister of Finance) does not understand anything. He has no idea.
We have to attract foreign investment and do away with indigenisation laws. The entire banking and financial sector need to be overhauled.
People are putting money in banks, only to find that it has disappeared due to charges
Where in the world, other than in Zimbabwe, Have you heard of a situation where you put your money in a bank and then you are phoned 20 days later that look you have to add some more because charges have eaten it.
People can not save in Zimbabwe’s banks. Bond notes issue is a bad bad ill thought idea. I want to tell you something..money is your relationshipof your economy and other economies.
An expression of your current account in relation to your exports and imports.
We are eating what we are not producing. for every dollar that we get from exports, 4 dollars go out to imports. The main problem is Zimbabwe does not have a cent in reserve. The country is in a black hole.
Here are the problems coming because of bond notes:
1, Shortages..especially fuel, milk, cooking oil
2, Inflation
3,Return of the black market.
4, Massive externalisation of US dollars,a business will not do well with bond notes if it has to import material from other countries in US dollars.. People will be forced to externalise hard currencies before shutting down.
We experienced this in 2008. They say once beaten once shy. We are not shy at all.
We are shameless. That’s the scourge of this generation. That’s the scourge of Chinamasa
Shame on Chinamasa
Tendai Biti