Zimbabwe Government Raided Citizen Bank Accounts and Stole US Dollar Balances and Now Wants to Replace with Worthless #BondNotes
How the Zimbabwe government stole the depositors US dollars in banks
It is heartbreaking that the Zimbabwe government has, once again, pounced on property rights, this time, by seizing bank deposits belonging to citizens and used these funds for, what God knows.
By law, each bank in Zimbabwe is supposed to post to the Zimbabwe Reserve Bank a portion of their depositors funds. This is for safe keeping of the funds and also as a security measure in case the bank goes bankrupt. In a normal world when a bank goes bankrupt, the reserve bank would then use these funds deposited by the bank to make sure the depositors are re-imbused their initial deposits.
So what happened this time in Zimbabwe?
The Zimbabwe central bank has spent these US Dollar deposits that was trusted to it by the banks. These funds should have never been touched. Now, depositors have gone to their banks and request to withdraw funds in their accounts, the banks say they don’t have any money. Why? Because they gave the money to cental bank for safe keeping. And, the central bank spent the money.
What’s the plan now.
The government has recognized that it has spent funds that belonged to depositors, and now there is pressure from the banks to release the depositor funds.
The government, came up with a plan. They print their own new currency, called Bond Notes, which the government says has same value as US Dollars.
The government will then replace the US Dollars they spent that belonged to Zimbabwe citizens. By a new law that President Mugabe decreed, everyone is supposed to accept the new Bond Notes as he says they are equivalent to the US Dollars.
So if John had an account balance of USD100 at Barclays Bank, the government took the USD100, and has now replaced it with the new currency, 100 Bond notes. Since this by law, one cannot refuse the new currency.
All government employees will now be paid in the new worthless currency, the bond notes. The bond notes are just paper money, printed in Zimbabwe and cannot be used anywhere outside Zimbabwe. So if I am an importer and want to go to South Africa to buy new clothes to sell, I am supposed to apply to the central bank to give me foreign currency (rands). Once my application is approved, I can then exchange my “bond notes” and the government will give me the rands, and off I go to South Africa. This is all bull crap! Daylight robbery.
All the lawyers in Zimbabwe must fight for the citizens. They must take the government to court for stealing the hard earned US Dollars that the government squandered that was raided in citizen bank accounts.
Enough is enough.
Comrade Why-not Bazooka Nhongo