Zimbabwe introduces bond notes to combat cash shortages

Robert Mugabe, President of Zimbabwe
Robert Mugabe, President of Zimbabwe

Zimbabwe’s central bank has announced the launching of notes with equivalent U.S. dollar values to ease cash shortages and promote exports starting next month.

The Reserve Bank Governor, John Mangudya, said on Thursday in Harare that the bank anticipated that the bond notes equivalent to 75 million dollars would be in the market by the end of December 2016.

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

Mangudya said he sought to calm concern that the introduction of the bond notes might herald the return of the old currency.

“The macroeconomic fundamentals are not yet right to do so,” he added.

Zimbabwe has this year experienced cash shortages which economists attribute to its reliance on imports after many industries collapsed.

The country witnessed months of protests against the deterioration of the economy and alleged human rights abuses under 92-year-old President Robert Mugabe, who ruled the country since 1980. (Reuters/NAN)

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