The Reserve Bank of Zimbabwe is, according to the Financial Gazette, to introduce United States Dollar linked Bonds.
Now these aren’t to be confused with actual currency like that failed attempt to have a US$ placeholder they tried a few years back. These are bank bonds:
“A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debt holders, or creditors, of the issuer. Bond details include the end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments made by the borrower.”
Investopedia
These are just IOUs, the Reserve bank is in essence borrowing money with these using these bonds. A bit of chatter on social media showed folks were losing sleep thinking version 2 of the ‘bond note‘ is coming.
Goods and services are most likely being quoted in US$ even those needed by the government. This is one avenue by which they can raise forex, the hope is that this is to meet their many obligations (the stand-off with civil servants comes easiest to mind).
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hie
Hello
October is the anticipated month. Sincerely yours, W. J. Kassel
How different from the phenomenal bearer cheques will these be? Just another case of a scrap piece of paper fancily emblazoned and ascertained to have an assumed value.
Hahaha. And of course one must look at the history of integrity of the one promising the IOU. Impeccable in its failure to honour a single thing. Hilarious option!
I guess they will continue to fish for USD. When they steal USD from exporters accounts and tell the people to transact in ZWL, while RBZ, Finance, and government try to use the Pandemic for sympathy to beg the Paris Club for debt relief and borrow more on top of the $13 Billion USD already owed to the World Bank and other lenders for now 2 decades. ED is a wanting criminal that his stolen Presidency continues to rape Zimbabwe and sell it to his Colonial white masters and Chinese that now openly abuse Zimbabweans and not paying them but just this is Zimbabwe. No one in their right mind would purchase any debt from a country being run by thieves and will never be repaid. Zimbabwe is toxic and no one listens to Finance, RBZ now crying wolf. It is just a matter of a few weeks before the total financial collapse. Same as the Interbank auction will fail again as they are now using it as a Ponzi Scheme each week and using a new auction to pay for previous money owed to bidders from last week auction. Zimbabwe needs to fall to its knees for the people to wake up and get rid of these BLACK DEVILS that have impressed more misery on the people while ED and his criminal family continue to rape the people while the corruption runs out of control. This is crimes against the people and needs to be put in check. There is nothing new about what RBZ is trying to do to raise USD. If they believe in the ZWL that much why must to keep stealing USD from every account in the country? In any case, when black colonial minded criminals continue to run a Colonial government over its people. It let you know whites are still in charge. In Africa after 60 years of being liberated in most countries. Miserable lives of African people persist. That is a clear sign Colonial hands still run Africa via Black Proxy so-called corrupt leaders that are no more than a puppet with the white hand up their asses still doing the bidding for White Supremacy.
Zimbabwe does not owe the world bank 13 billion.
They do not know what they are doing,for zimbabwe to be back to normal,they must take the option of the south african Rand ,south africa can manage the rand and this will help zimbabwe.
The government is actually trying to borrow money from themselves, that’s part of the plan to try rig the economy, otherwise where else is this virtual
(non existent) dollars going to be coming from. 🤷🏾♂️🇿🇼🙆🏽♂️
Do you know how to buy these bonds?