The new RBZ Gavhuna says he wants to float a $50million bond for his communist style worded special coins. We said something about it last time and thought that this Mangudya chap will back off. In the first place the so called special coins bond is being issued on behalf of government. So Mugabes government wants to borrow $50 million from the domestic and foreign market in order to import coins. Here is the dilemma: first, the same Mangudya does not tell us how many times his RBZ will have to go back to the market to borrow for the sake of importing the coins. He wants to tell us that its not the RBZ which is going to mint the coins which is a blue lie. The reason being that these coins, when imported (assuming they will) will also need replacement because coins like notes, can be damaged. If a country is minting its own coins then the replacement will be easy. But because Mangudya wants to tell us that he is importing the coins, it means that every year his RBZ would have to import more coins and since his RBZs only source of funds to bring the coins to the country is through borrowing, then RBZ would be on a borrowing spree till kingdom come. Thats not possible. So technically Mangudya is lying to the nation that he wants to borrow $50 million for the sake of importing coins. He wants to use the money for something else. And we know that the junta is desperate for cash. Mangudya is also forgetting that our local banks once imported Rand coins, and US$ coins but it did not work. It was becoming too expensive for shops etc to buy them. So banks ended up re-selling the coins. What has changed now? In any case, like we said before, the issue is not whether the coins are imported or minted in the country, it is the currency of the coins that matters. Mangudya is hiding the fact that these are Zim Dollar coins. So why importing them when Gono bought state of the art coin minting machines which he even boasted that he was going to use to mint other countries coins for a fee?. And does it matter whether the Zim Dollar has been printed in Australia or Zimbabwe? Does that change its value? It doesnt but Mugabe and his junta are at pains explaining how to bring the Zim Dollar back. They are now more determined than ever before to bring the Zim Dollar because there is no foreign currency and Civil Servants bonuses will definitely not be paid this year .So before Christmas Zimbabweans should face the reality of having Zim Dollar notes and coins in circulation. The junta has tried to explain that countries like Namibia use the South African Rand but also use their Namibian Dollar and the Namibian coins. But they forget that the Namibian Dollar has value matched by their economy whereas the Zimbabwean dollar and coins will not have any value because the economy is dead. What we are told is that Mugabe wants to borrow the $50 million and add it to the money in circulation that shall be impounded from banks... depositors money and then claim that Zimbabwe has enough foreign currency to defend the Zim Dollar. So come November/December, the junta will announce that all foreign currency in banks will now be property of RBZ and in exchange you get Zim Dollars which they will tell you is 1-1 with the US Dollars. There shall be an outcry at first but for the first few months you will surely be able to exchange your Zim Dollar to US Dollar because the junta will still have the $50 million plus the impounded money. But this will fast get finished and we are back to 2009. And shortages, from petrol to food to everything. Thats Mugabe for you. He is determined to take Zimbabwe to the grave with him. Tell your friends and relatives, where possible to clean up your accounts of any cash. We feel pity for companies which cannot put their money under the pillow. Your money is gone! Eish.
Posted on: Mon, 08 Sep 2014 19:17:00 +0000
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