Zim's 'dreaded' bond notes coming next week, says central bank chief

2016-11-21 17:12
John Mangudya (File: AFP)

John Mangudya (File: AFP)

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Harare – Zimbabwe's dreaded bond notes are set to be out next week central bank governor John Mangudya has reportedly said.

According to the state-owned Sunday Mail newspaper, Mangudya said that all the statutes regarding the surrogate currency were in place, adding that the bond notes would be in circulation on November 30.

Mangudya further indicated that the central bank was now only finalising on putting "finer security features" on the new legal tenders before they could be rolled out.

He said that the delay in the roll out of the bond notes was a "strategy" to conscientise the public first.

"The central bank is going to avail bond notes by November 30 this year and there's no going back to that," Mangudya was quoted as saying.

The bond notes, according to reports, will be released in denominations of $2 and $5, and will be pegged at 1:1 with the United States dollar.

Zimbabwe has been in the grips of cash shortages since early this year.

President Robert Mugabe's government blamed this on locals hoarding and sending cash out of the country.

But critics maintained it was because of depressed industrial production and the government's increased borrowings on the domestic market.

Zimbabweans, who know the risks of worthless money all too well after hyperinflation between 2007 and 2009 gave them the 100-trillion-dollar banknote that barely bought a loaf of bread, are against the introduction of the bond notes.

They fear that the government is about to create another devastating crisis by printing its own "bond notes" that will officially be worth the same as the US dollar.

Read more on:    robert  |  john mangudya  |  mugabe  |  zimbabwe  |  southern africa

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