Bond Notes: A Case Of The Disappearing Currency

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The Reserve Bank of Zimbabwe (RBZ) deputy governor Dr Kupukile Mlambo said that  $140 million bond notes have already been issued amid challenges of cash shortage in the country. Mlambo said this during the Zimbabwe Confederation of Retail Indaba that took place on the 31th of May 2017.

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The maximum limit of the bond notes to be issued by the RBZ is $200 million.

“The shortage of money in the country is the shortage of foreign currency” said Mlambo.

The cash shortage is a result of the local industries that are not competitive and also using outdated machines leading to the trade deficit in the country according to Mlambo.

Zimbabwe recorded a trade deficit of $614 million in the first three months of this year, that is from January to March according to the Newsday.

The deputy governor also said that he had information of bond notes outside the country in Zambia, South Africa and Mozambique.

“I have heard bankers say there are a lot of bond notes outside, but we have got to establish how much they are.” said the deputy governor.

Last month the Minister of Finance Patrick Chinamasa said that the government was going to clamp down on money launderers to address the cash challenges in the country according to The Sunday Mail.

In April, the reserve bank of Zimbabwe (RBZ) financial intelligence unit was investigating several trustees over money laundering activities according to the Newsday.

“Most of banks operating n Zimbabwe are carrying out or have carried out their respective institutional or internal money laundering and terrorist financing risk assessment at the instance of the Financial Intelligence Unit” said Chinamasa according to the Herald.

Mlambo also said that the best way to reduce the money laundering is to put right policies.

The Indaba, which was officially opened by the Minister of State for Harare Province Miriam Chikukwa,  was running under the theme “Harnessing retail opportunities for accelerated economic development”

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