Request any song you want for FREE! All songs requested will be tuned to a 432 Hz frequency.

Request Now

TETELESTAI Notification List

The TETELESTAI (It is finished) email which will contain the first 800#'s will be posted first on a private page and will be sent out to everyone subscribed to the private page's feed.

If you wish to subscribe to the private page's feed, please visit the TETELESTAI page located HERE and access the private page.

If you're having trouble please give me an email at TetelestaiDC@gmail.com

(Note: The TETELESTAI post is the official "Go" for redemption/exchange.)

Guest Posting & Responding Now Available

Dinar Chronicles is now allowing viewers to guest post and respond to articles. If you wish to respond or speak your mind and write a post/article or about the current situation relating to Iraq, the RV, the GCR and so on. You may now send in an entry.

All you need to do is send your entry to UniversalOm432Hz@gmail.com with these following rules.

The subject line of your email should be: "Entry | (Title of your post) | Dinar Chronicles"

- Proper grammar
- Solely write intel, rumors, news, thoughts, messages regarding Dinarland, Iraq, the RV, the GCR, NESARA/GESARA, the Republic, Spirituality, Ascension and anything that is relating
- Your signature/name/username at the end (If you wish to remain anonymous then you don't need to provide one.)

If you have any questions or wish to communicate with us then please give us an email at UniversalOm432Hz@gmail.com

Send your entry and speak out today!

Follow Dinar Chronicles by Email

Featured Post

"Frog Feet" - GCR/RV Intel SITREP - Sunday - August 20, 2017

Received via email for publication at 8:00 AM EDT. ~ Dinar Chronicles The boiling frog is a parable describing a frog being slowly boile...

Thursday, August 3, 2017

Zimbabwe: $300 Million More Bond Notes to Hit Market

$300m more bond notes to hit market

August 3, 2017



Dr Mangudya

Happiness Zengeni and Taurai Mangudhla—
THE Reserve Bank of Zimbabwe (RBZ) has secured close to $1 billion in facilities to ease foreign currency shortages, while it has selectively increased export incentives as part of efforts to stimulate production. RBZ governor Dr John Mangudya yesterday emphasised in his Mid-Term Monetary Policy Statement that focusing on foreign exchange generation and the production of goods and services was essential. He described foreign exchange as a critical factor of production, especially under the multi-currency regime and Western estrangement, as evidenced by Zimbabwe’s limited access to foreign finance.

To deal with the challenges, Dr Mangudya extended the bond notes facility by another $300 million through a standby liquidity facility (The Stand-by Liquidity Support) from Afreximbank.

This will bring the total bond notes in issue to $500 million.

The previous $200 million facility which kick-started the export incentive is almost exhausted after a total of $175 million (as at June 30, 2017) had been paid out under the export incentive scheme in the form of bond notes against a payable amount of $187,7 million.

“We need to change the cash shortages narrative to foreign exchange shortages,” said Dr Mangudya.

“We do not have a cash shortage, but rather we do not generate enough foreign exchange.

“This change of narrative is essential in order for the nation to focus on foreign exchange as the critical missing resource or factor of production which needs policy interventions to re-balance the economy.”

Highlights . . .

  • Export incentive scheme increased by $300m.
  • Cash in circulation at $1bn.
  • Nostro stabilisation facility enhanced to $600m.
  • 85 percent of foreign exchange coming from tobacco, gold, platinum, chrome and diamonds
  • Foreign currency earnings at 2,96bn in first six months
  • Annual broad money supply at $6,2bn.
  • Treasury Bills stock and bonds at $2,5bn.
  • RBZ to establish Zimbabwe Portfolio Investment to facilitate efficient repatriation of portfolio related funds to ZSE investors.
  • Export-Import Bank Trade Backed Securities facility renewed.
  • Foreign currency cash on person per exit from Zimbabwe reviewed to $2 000.
  • A savings bond developed to encourage savings.
  • The Industrial Development Corporation to become a DFI.
  • 350 firms benefiting under the Government’s import restriction.
  • NPLs down from 20,45 percent in 2014 to 7,98 percent as at 30 June 2017.
According to the central bank, the stock of money in circulation in Zimbabwe is made up of bond coins ($25 million), bond notes ($175 million) and multi-currencies dominated by the US dollar at approximately $800 million, to give a total of around $1 billion.

“This quantity of money in the economy is quite sufficient to support the usable bank balances, as measured by the RTGS balances, currently sitting at around $1,6 billion within the banking system,” Dr Mangudya said.

He said the bulk of the cash was not making it back to the banking sector, but was in the informal sector and the parallel market.

“We need to be disciplined in the utilisation of foreign currency,” said Dr Mangudya. “Money has to circulate and in that way we can unlock value from this economy. Zimbabwe is Africa’s best kept secret, but value can only be unlocked if we are disciplined.

“It is against this philosophy and building on the success of the 2,5 – 5 percent export incentive/subsidy scheme in securing and increasing the export of goods (by 14 percent) and services and diaspora remittance since May 2016, that the bank found it imperative to extend and enhance the export incentive scheme by $300 million under a standby liquidity support from Afreximbank.”

Dr Mangudya reiterated that Zimbabwe would not slip into high inflation again, as the central bank would release the bond notes into the market on a drip-feed basis from September 1.

In addition to the Standby Liquidity Support facility, Afreximbank had also availed an enhanced nostro stabilisation facility of $600 million from Afreximbank to manage the cyclical nature of Zimbabwe’s foreign exchange receipts.

This facility would be available for drawdown after the closure of the tobacco selling season by the end of this month.

“This nostro stabilisation facility shall ensure that the revival of firms is strengthened and that critical imports of fuel and electricity are assured,” said Dr Mangudya.

He increased the Diaspora Remittances Incentive (DRIS) for remittances received through banking or wallet accounts to 10 percent from 3 percent, with effect from this month to enhance financial inclusion for remittances recipients.

Dr Mangudya said DRIS attracted international remittances to flow through formal channels, but informal remittances were still high.

“The remittances market also has a high appetite for cash as the majority of recipients are not banked,” he said. “The incentive for Money Transfer Agencies and remittances received as cash shall remain at 2 percent and 3 percent, respectively.”

In order to ensure that the nostro stabilisation facility is supported by a continuous stream of export receipts, and by so doing improve the efficient utilisation of foreign exchange and bring equity in the foreign exchange market, foreign exchange receipts from platinum and chrome would be treated in the same manner as gold, diamonds, tobacco and cotton.

The central bank noted that total foreign currency receipts for the country amounted to $2,96 billion during the period January to June 2017.

Of that amount, $2,1 billion was utilised for various foreign payments through banks.

The balance of $887 million (30 percent) was received and administered by the Reserve Bank through the Foreign Exchange Management System.

Dr Mangudya reviewed the carrying of foreign currency cash on person per exit from Zimbabwe to an equivalent of $2 000 per individual per exit.

Amounts in excess of this figure require prior authorisation from Exchange Control through normal banking channels.

The central bank will also establish a Zimbabwe Portfolio Investment Fund to facilitate the efficient repatriation of portfolio related funds to foreign investors invested specifically on the Zimbabwe Stock Exchange (ZSE).

This comes as banks have a $75 million backlog on the repatriation of dividends and investment proceeds.

Dr Mangudya said a dedicated Portfolio Investment Fund would be opened at two designated commercial banks for the receipt of all portfolio investment proceeds into Zimbabwe and the repatriation of foreign investors’ proceeds from the ZSE.

The central bank shall place an initial seed capital of $5 million in this Fund to kick-start the repatriation mechanism and improve investor confidence.

Other measures introduced by Dr Mangudya included the extension of the African Export-Import Bank Trade Backed Securities (Aftrades) to $400 million for a further two years, the development of a Savings Bond for individuals, churches and other institutions, which offers simplicity and seven percent returns with minimum investment from as little as $100 with no commission, agency or service fees.

The Industrial Development Corporation of Zimbabwe would be transformed into a development financial institution to operate under the RBZ

Source: The Herald

Reactions:

Disclamer:

We are in compliance with, "Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use."

All rights reserved go to their respective holders. We do not own the intellectual property shown on this website, the respective holders own that privilege unless stated otherwise.

We do not endorse any opinions expressed on the Dinar Chronicles website. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on Dinar Chronicles.

Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not intend to and are not providing financial, legal, tax, political or any other advice to any reader of the website. This website is...Read More