AGL 40.10 Decreased By ▼ -0.90 (-2.2%)
AIRLINK 127.80 Decreased By ▼ -0.34 (-0.27%)
BOP 6.60 Decreased By ▼ -0.10 (-1.49%)
CNERGY 4.60 Increased By ▲ 0.08 (1.77%)
DCL 8.58 Decreased By ▼ -0.03 (-0.35%)
DFML 41.40 Increased By ▲ 0.31 (0.75%)
DGKC 86.50 Decreased By ▼ -0.63 (-0.72%)
FCCL 32.13 Decreased By ▼ -1.26 (-3.77%)
FFBL 65.40 Decreased By ▼ -0.01 (-0.02%)
FFL 10.27 Decreased By ▼ -0.20 (-1.91%)
HUBC 110.60 Decreased By ▼ -0.03 (-0.03%)
HUMNL 14.70 Decreased By ▼ -0.60 (-3.92%)
KEL 5.15 Increased By ▲ 0.17 (3.41%)
KOSM 7.15 Decreased By ▼ -0.28 (-3.77%)
MLCF 41.69 Decreased By ▼ -1.30 (-3.02%)
NBP 60.20 Decreased By ▼ -0.22 (-0.36%)
OGDC 194.48 Decreased By ▼ -3.16 (-1.6%)
PAEL 27.95 Decreased By ▼ -1.06 (-3.65%)
PIBTL 7.98 Decreased By ▼ -0.28 (-3.39%)
PPL 150.52 Decreased By ▼ -3.64 (-2.36%)
PRL 27.08 Increased By ▲ 2.08 (8.32%)
PTC 16.08 Decreased By ▼ -0.01 (-0.06%)
SEARL 78.20 Decreased By ▼ -0.25 (-0.32%)
TELE 7.42 Increased By ▲ 0.05 (0.68%)
TOMCL 35.70 Decreased By ▼ -0.39 (-1.08%)
TPLP 7.90 Decreased By ▼ -0.17 (-2.11%)
TREET 15.87 Decreased By ▼ -0.09 (-0.56%)
TRG 52.70 Decreased By ▼ -0.66 (-1.24%)
UNITY 26.65 Decreased By ▼ -0.06 (-0.22%)
WTL 1.28 Increased By ▲ 0.01 (0.79%)
BR100 9,920 Decreased By -52.1 (-0.52%)
BR30 30,751 Decreased By -346.3 (-1.11%)
KSE100 93,225 Decreased By -423.8 (-0.45%)
KSE30 28,885 Decreased By -132.9 (-0.46%)

Zimbabwe will issue "bond notes" equivalent to the US dollar from next week to ease critical cash shortages, the central bank announced Saturday, despite widespread public fear of a return to hyperinflation. "The Reserve Bank of Zimbabwe is pleased to advise the nation of the introduction of bond notes with effect from Monday," the bank said in a statement.
The southern African country has used the US dollar since 2009 after a rate of inflation that peaked at 500 billion percent rendered the Zimbabwe dollar unusable. But the country has in recent months experienced a severe shortage of US dollar banknotes forcing authorities to print what locals have dubbed "surrogate money". "The initial release of bond notes shall be in an amount of $10 million (9.5 million euros) in denominations of $2 and $2 million in $1 bond notes," the central bank said in a statement. Depositors will be allowed to withdraw a maximum of $50 worth of bond notes per day and $150 a week.
The 2009 switch to foreign currencies saw relative economic stability before the economy began to falter again as government policies deterred investors. The economic decline has worsened in recent months with banks running short of cash forcing desperate depositors to sleep overnight outside branches to be sure of accessing their money.
Those businesses that have weathered Zimbabwe's successive economic storms are grinding to a halt as the government repeatedly fails to pay soldiers and civil servants on time. Cash shortages prompted the authorities to impose limits on withdrawals and the amounts that travellers can carry when leaving the country. The new notes which authorities said would ease cash shortages were meant to be rolled out in October.

Copyright Agence France-Presse, 2016

Comments

Comments are closed.