Zimbabwe introduces bond notes to combat cash shortages

Zimbabwe will launch notes with equivalent US dollar values to ease cash shortages and promote exports starting next month, the central bank announced Thursday.

"We anticipate that bond notes equivalent to around 75 million US dollars will be in the market by the end of December 2016," Reserve Bank Governor John Mangudya said.

Zimbabwe replaced its worthless currency with the US dollar in 2009 following massive inflation sparked by a decade-long economic crisis.

Mangudya sought to calm concern that the introduction of the bond notes might herald the return of the old currency, saying that "the macroeconomic fundamentals ... are not yet right to do so."

The southern African country has this year experienced cash shortages which economists attribute to its reliance on imports after many industries collapsed.

Zimbabwe has seen months of protests against the deterioration of the economy and alleged human rights abuses under 92-year-old President Robert Mugabe, who has ruled the country since 1980.

 

Last update: Thu, 15/09/2016 - 18:12
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