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MDC-T to Take RBZ Governor to Court Over Proposed Bond Notes

Former Prime Minister Morgan Tsvangirai.

Former Prime Minister Morgan Tsvangirai’s Movement for Democratic Change (MDC) party has resolved to take the Reserve Bank of Zimbabwe to court over its plans to introduce bond notes saying such a move is unconstitutional.

Members of the MDC-T National Executive committee met at the main opposition party’s Harvest House headquarters today to discuss the country’s liquidity crunch and proposals by the central bank to introduce bond notes in the financial market.

MDC-T spokesperson Obert Gutu says his party resolved to take the central bank to the Constitutional Court, arguing that its plan to print bond notes is outside its mandate outlined in the constitution.

He says his party would also stage public protests to show its displeasure over the central bank’s proposed plan.

The central bank chief has already indicated that fiscal authorities would want to introduce bond notes designed to give a five percent export incentive to Zimbabwean business-people in an effort to curb externalization of foreign currency through a $200 million facility financed by the African Export and Import Bank.

Zanu PF spokesman Simon Khaya Moyo refused to comment on the matter saying he would wait for the RBZ to implement its plans and see what the MDC-T would do.

The MDC-T says the central bank’s plans to introduce bond notes is an attempt to bring the Zimbabwean currency through the back door.