Friday, 16 September 2016

Zimbabwe to issue $75 million in bond notes

Zimbabwe’s central bank Governor
John Mangudya announced the bank
will start circulating $75 million worth
of bond notes in October.

The announcement has sparked fears
of a return to hyperinflation which
wrecked the economy years ago.
The notes will first be introduced with
$1 and $5 denominations.
The plan is backed by a $ 200m bond
facility from the African Export-Import
Bank .
An earlier announcement of plans to
introduce the notes sparked riots in the
Zimbabwe adopted the US dollar and
South African rand in 2009 after
inflation peaked at 231 million percent
rendering the local dollar worthless.
But the country 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, which will have no value
outside the country.