Gift Phiri 5 March 2017
HARARE – The Reserve Bank of Zimbabwe is not rolling out $10 and $20 bond
notes currency, central bank governor John Mangudya has said.
This comes after the State media claimed government was expected to inject
higher denomination bond notes soon.
The claims were made in a report that came after opposition leader Joice
Mujuru’s bid to challenge President Robert Mugabe’s powers to introduce
the surrogate currency hit a snag after the Constitutional Court
(Con-Court) struck the matter off the roll.
Mangudya told the Daily News on Sunday: “It’s not true that we are working
on $10 and $20 bond notes.”
The RBZ last month started circulating a $5 bond note amounting to $15
million, bringing the total amount of bond notes in circulation to $94
This comes after the country introduced a $2 note and $1 coin last
November to ease crippling cash shortages.
This also comes as stressed banks have continued to be plagued by long
queues in and around their premises, as depositors continue to rush to
withdraw the new currency, with many still struggling to access money from
automated teller machines (ATMs) .
Zimbabwe launched a “bond notes” currency on November 28 amid fears it
could stock hyperinflation and possibly bring down President Robert Mugabe
and his government.
The bond notes – ushered in by the central bank to incentivise exporters
and relieve a scarcity of dollars – have so far been widely accepted by
most businesses and black market traders but are suffering weakening
Many have suggested that the central bank inject more capital in the form
of bond notes into financial institutions. It was not immediately clear
how much capital would be needed to shore up the cash-strapped banks, but
the RBZ has indicated it was ready to inject more capital only to the $200
million threshold guaranteed by the Cairo-based Africa Export and Import
Bank (Afreximbank) .
Mangudya told the Daily News on Sunday the central bank has to date issued
$94 million of bond notes into the market against an aggregate value of
the export incentive of $118 million.