Home » Business » ZIMBABWE SEEKS TO FAST-TRACK ISSUANCE OF BOND NOTES TO TACKLE LIQUIDITY CRISIS

Zimbabwe's Finance and Economic Development Minister, Patrick Chinamasa, is expected to push through Parliament Thursday for fast-track passage of the Reserve Bank Amendment Bill which aims to pave the way for the introduction of bond notes to overcome the lidity crisis in the country.

The Reserve Bank of Zimbabwe is aiming to introduce by the end of this month the bond notes as a legal tender to address current cash shortages the economy is facing.

Chinamasa was to have introduced the motion that allows the National Assembly to expedite passage on the Bill on Wednesday. According to the Order Paper, Chinamasa is set to move a

motion Thursday to set aside four Standing Orders to allow the fast tracking of the RBZ Amendment Bill.

The RBZ Amendment Bill 2016 gazetted last week will enable the central bank to issue bond notes exchangeable at par with the United States dollars. A bond note is defined as a unit of tender

whose par value in the US dollar is backed by a guarantee extended to the RBZ by one or more financial institutions.

Earlier this month, the government gazetted Statutory Instrument No. 133 of 2016 to give the central bank the powers to introduce bond notes.

"Bond notes" which are due to be released into circulation this month, are being introduced with the twin objective of promoting exports and addressing the country's liquidity crisis.

Source: NAM NEWS NETWORK

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