Zimbabwe To Launch Zim Bond Notes In August 2016

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The Zimbabwean Central Bank will introduce its new bond notes valued at par with the US dollar into the country’s multi-currency system that has allowed nine world currencies to circulate legally in the market.

The Zimbabwean bond notes will be in denominations of $2, $5, $10, and $20.

John Magunya, the Reserve Bank governor of Zimbabwe said the date of launching the currency will be around August or September and not as it was reported by the media that it will be launched this month.

Last month authorities in Zimbabwe announced strict capital control measures including cash withdraw caps and export incentive schemes in which exporters will be rewarded with bond notes to tame a liquidity crunch of the US dollar.

Zimbabwean Central Bank deputy governor, Kupukile Mlambo assured the public that the authorities will not channel US dollar out of the market through back doors and the issuance of the bond notes would be limited in amount not exceeding $200 million.

He was quoted saying that anyone travelling to any country can still go to their bank and get their dollars.

“Even if you are travelling to South Africa, United Kingdom or any other country you can still go to your bank and get your dollars”, he said.

The issuance of the bond notes has been supported by a $200 million loan facility provided by the African Export-ImportĀ  bank and monitored by the International Monetary Fund (IMF).

Zimbabwe is currently trading in with the US dollar, Australian dollar, South African Rand, Botswana Pula, Euro, British Pound, Japanese Yen, Chinese Yuan and Indian Rupee, but their official reserve currency is the US dollar.

On the streets of Harare traders accept a variety of currencies. Near the boarders of Botswana and South Africa, the Pula and the Rand are popular.

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