Traders, transporters, forwarders and investors into Zimbabwe should steer well clear of the new bond notes now floating around in that country.
The proposed introduction of these by the Zimbabwe Central Bank chief to solve the cash crunch and stimulate the economy has been termed “unconstitutional” by some financial experts.
And their introduction could lead to a constitutional court showdown, according to a report in the Voice of America (VoA).
The governor of the Reserve Bank of Zimbabwe (RBZ), John Mangudya, is on record saying that these controversial bond notes will come in $2, $5, $10 and $20 denominations, backed by $200 million from the African Export Import Bank (Afreximbank). A move that has led to loud whispers of a new Zimbabwe currency, although this is laughed off by Zanu-PF politicos.
But VoA quoted Harare lawyer advocate Fadzayi Mahere saying: “It is worth highlighting that the term ‘bond note’ is not defined anywhere in the Reserve Bank Act or the Banking Act. He also argued that the term was an invention by the central bank chief and “it is fictitious money”.
Another legal expert and founder of TN Bank, Tawanda Nyambirai, told the Voice that it might be premature to criticise Mangudya - but he insisted that legal provisions of the constitution must be followed.
