Tuesday, 20 September 2016

MUJURU FIGHTS TO STOP BOND NOTES

Former Vice President Joyce Mujuru has ramped up her bid to stop the Reserve Bank of Zimbabwe from introducing bond notes the country's proposed surrogate currency next month as pressure continues to mount on president Robert Mugabe's embattles government to turn around the dying economy.

Mujuru's lawyer Gift Nyandoro wrote to the constitutional court asking the highest court in the land to treat her recent legal action against the notes with urgency, following last weeks' announcement by RBZ governor John Mangudya that the Central Bank would be unveiling $75 million worth of surrogate currency at the end of October.

The Reserve Bank of Zimbabwe (RBZ) recently said the introduction of export incentives and bond notes backed by a $200 million AFREXIMBANK facility is still on course for rollout at the end of October.

Export incentives will be given to encourage exports including tobacco and gold receipts, while bond notes will limit foreign currency outflows.

RBZ Governor, Dr John Mangudya told mining industry stakeholders last week that the central bank is committed to improving productivity as this is the only way to boost the economy.

The central bank chief allayed fears that the introduction of bond notes is a ploy to bring back the Zimbabwe dollar.

The country's export performance has been subdued resulting in huge foreign currency outflows.

Only five items account for 80 percent of Zimbabwe's exports and these are: tobacco, gold, platinum, ferrochrome and diamonds.

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