Zim to issue cash notes soon, says Finance Minister  - Zimbabwe Situation

Zim to issue cash notes soon, says Finance Minister 

Source: Zim to issue cash notes soon, says Finance Minister | Fin24

Zimbabwe will issue new notes and coins soon to replace the country’s quasi currency that was introduced three years ago in a failed attempt to counter a crippling shortage of cash and that’s pushed inflation to the highest rate since 2008.

The return to a fully fledged local currency exchangeable outside the country’s borders will be backed by an undisclosed amount of foreign-exchange reserves, gold and loans, Finance Minister Mthuli Ncube said in an interview on August 15 in the capital, Harare.

A Treasury spokesman on Monday said it first needed to compile data on the country’s reserves before commenting on how much foreign exchange would be used to back the new currency.

“We already have our own local currency, but this will be the first Zimbabwe dollar notes which will trade at parity to the bond notes,” Ncube said.

The southern African nation abandoned the Zimbabwe dollar in 2009, after a bout of hyperinflation, in favor of a basket of currencies including the US dollar and the rand. In a bid to deal with the subsequent cash shortages, it introduced so-called bond notes, and RTGS$ in their electronic form, which aren’t accepted outside the country.

Ncube reintroduced the Zimbabwe dollar in June, accompanied by a ban on the use of foreign currencies. This led to a rapid erosion of spending power with the local dollar trading at almost 10 to the greenback. Bond notes were officially said to be at parity as recently as February.

COMMENTS

WORDPRESS: 5
  • comment-avatar

    Monopoly money

    • comment-avatar
      Flick 1 month ago

      Andy, You got it in one. They couldn’t organise a pi**up !!! in a brewery. What a bunch of wasters and losers they are, from Mnangagwa downwards. Zim will never come right until zanupf is dead and buried.

  • comment-avatar
    ace mukadota 4 weeks ago

    Cash is king in ZW – provided they are USD notes comrades

  • comment-avatar

    Cannot work – will stoke inflation. There is no collateral backing, as is said above ‘monopoly money’. Fix the inflation, hunger, water, Electricity, no industry / agriculture/ civil rights etc; THEN think of an independent currency. This might take 20 years.

  • comment-avatar
    johno 4 weeks ago

    i smell billions trillions quadrillions quintillions and so no coming