Zim bond notes to reach half a billion: Central bank chief

2017-08-03 10:00
File: AFP

File: AFP

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Harare - Zimbabwe's central bank chief says the country will print an extra 300 million dollars’ worth of bond notes, despite an earlier promise not to exceed the 200 million figure.

Any mention of money printing in Zimbabwe fuels fears of a return to hyper-inflation and the black market trade in scarce foreign currency that peaked in 2008.

Bond notes were introduced last November to ease chronic shortages of US dollars, and to encourage exporters who earn the country foreign currency.

'Drip feed basis'

The central bank has so far fed 175 million dollars’ worth of the notes, in denominations of two and five dollars, into the economy.

But in a monetary policy statement on Wednesday, Central Bank Chief John Mangudya said another 300 million dollars of the notes would be released, backed, like the first 200 million, by a loan from the Cairo-based African Export-Import Bank (Afreximbank). 

"As like under the 200 million US-dollar facility, the (central) bank will release the bond notes into the market on a drip-feed basis," he said.

'Inefficient circulation of money'

Until now, bond notes have largely kept their value against the US dollar because of their scarcity. There are fears that having extra notes on the market will fuel a black market trade in US dollars.

Massive bank queues persist outside most commercial banks around the country, as depositors battle to withdraw their money, mostly in bond notes and coins. 

Mangudya said one billion dollars’ worth of cash was circulating in Zimbabwe, but was mostly in the informal sector.

"The inefficient circulation of money is significantly causing shortages in the formal economy and the banks," he said, adding that individual Zimbabweans would only be able to take 2 000 US dollars with them on foreign trips.

Read more on:    john mangudya  |  zimbabwe  |  southern africa

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/World
 

For the love of Corgis!

WATCH: 35 Corgi's to make your day! If they’re good enough for the Queen of England they’re good enough for us.

 
 

Paws

Can we communicate with our pets?
8 great natural remedies for your pet
Buying a puppy? Don’t get scammed!
WATCH: These funny animal videos will make you LOL!
Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.