Stakeholders Reassured As Bond Notes Release Approaches

Dr Mangudya

The RBZ has been taking various measures to reassure major players in the economy and members of the general public of the validity and advantages of bond notes. RBZ Governor, Dr Mangudya, has been meeting with various stakeholders to explain in detail how the notes, under the export initiative, will help and benefit these stakeholders. In efforts to increase the inflow of foreign currency, the central bank is offering a 5% export bonus. Dr Mangudya said Tobacco Farmers who sold their produce this past season will receive a total of $29.8 million as export incentives. This money will be in the bank accounts of the farmers by the end of this month according to the Governor. This suggests that the bond notes have neared their release as awareness campaigns continue to be flighted.

The governor also met with IATA after the association expressed concern over how bond notes would affect airlines. Dr Mangudya told the body that the central bank will repatriate the value of bond notes paid out to airlines in US dollars as payments to foreign airlines falls under foreign payments. After the meeting, the Board of Airlines representative and South African Airways country manager Winnie Muchanyuka said the airlines would accept bond notes. According to Newsday Zimbabwe, Muchanyuka said “We have had engagement with the Reserve Bank of Zimbabwe and IATA to see how the bond notes will work. This is because IATA wanted to know how the bond notes would be repatriated to foreign airlines. Airlines will accept bond notes. From that perspective, you do not need to worry” she concluded.
Perhaps a sign that what seems to be the inevitable advent of the new instrument are becoming better received by the business community.

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