Zimbabwe

Zimbabwe to use US 'bond notes' as cash crunch bites

2016-09-15 15:00

(iStock)

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

Special Report

World Bank responds to Zim activist Dzamara's petition
World Bank responds to Zim activist Dzamara's petition

The World Bank country director for Zimbabwe, Guang Zhe Chen, has responded to a recent petition by Zimbabwean activist Patson Dzamara, calling on the financial institution not to resume support for the southern African country.

Harare - Zimbabwe announced on Thursday that "bond notes" equivalent to the US dollar would be introduced in October, sparking fears of a return to the hyperinflation that wrecked the economy several years ago.

The country, led by authoritarian President Robert Mugabe, adopted the US dollar and South African rand in 2009 after inflation, which peaked at 231 million%, rendered the local dollar worthless.

But Zimbabwe has run out of US dollar notes in recent months, and hopes to ease the cash crunch by printing its own "bond notes" that will be valued in denominations of $2, $5, $10 and $20.

The plan was widely criticised when it was revealed in May, with analysts saying the token currency would not hold its US dollar value and would be seen as a new version of the valueless local dollar.

"The bond notes will start to circulate by the end of October and will be at par with the US dollar," Reserve Bank of Zimbabwe governor John Mangudya said in Harare.

"We anticipate by the end of the year $75 million will be in the market."

A wave of protests has shaken Mugabe's regime this year, with "No to bond notes" among the regular slogans expressing grievances against the government amid a worsening economic crisis.

The cash shortage has forced the government to delay paying salaries each month to civil servants and the military.

Read more on:    robert mugabe  |  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.

SHARE:

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
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.