Following a meeting held with the Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Mangudya on the 14th of November Zimbabwe Congress of Trade Unions (ZCTU) addressed journalists today to express their concerns and misgivings over the introduction of the Bond notes.
The labour body said that the introduction of bond notes will cause problems for citizens and the economy.
“We believe that bond notes do not address the structural challenges and fiscal indiscipline and corruption which are at the heart of the under performing economy. There is need for a holistic approach to the problems the country is facing, not this piece-meal approach,” read the statement
The announcement of the introduction of bond notes has caused withdrawal of deposits from the banking system as citizens do not want a repeat of what happened to them in the hyperinflation period of 2008.
Having bond notes circulation limited only in Zimbabwe, will result in businesses struggling to meet import requirements of the economy creating shortages and upward pressures on prices.
ZCTU is convinced that it is only through social dialogue and a Social Contract that the much needed fiscal discipline reprioritization and improved quality of expenditures as well as navigating policy conflicts can be achieved in the national interest.
“South Africa is Zimbabwe’s biggest trading partner hence ZCTU proposes that ‘randification’ and rand based export incentive is a way far better than bond notes which will not in any way help Zimbabweans as the cash crisis is a symptom of a more complex and bigger problem.” added the statement