Home » Business » 17 MLN USD WORTH OF BOND NOTES NOW IN CIRCULATION, SAYS ZIMBABWEAN VEEP

Zimbabwean Vice-President Emmerson Mnangagwa says 17 million US dollars worth of bond notes are now circulating in the market following the release of a second batch worth 7.0 million USD by the central bank this week.

The Reserve Bank of Zimbabwe (RBZ) introduced the notes to alleviate cash shortages the country is facing, which have been attributed to falling exports, hoarding and externalization. The bond notes are also aimed at encouraging exports, the main source of foreign currency for Zimbabwe.

An incentive of up to five percent of the value of export earnings will be given to companies which sell their goods outside Zimbabwe, which will be paid in bond notes.

The bond notes, pegged at par to the US dollar, are backed by a 200 million USD Afrexim Bank facility and are operating alongside a basket of foreign currencies which Zimbabwe adopted in 2009.

Mnangagwa told Parliament Wednesday that the government hoped that the bond notes would help to ease liquidity challenges. "The Reserve Bank of Zimbabwe introduced bond notes initially worth 10 million USD last Monday and they are putting in another 7.0 million USD so we are now at 17 million USD," he said.

"They are going to put bond notes again until we reach the amount stated which is intended to ease cash shortages in internal commercial transactions amongst our people."

The limit of the value of bond notes that the central bank has said it will print is 200 million USD.

Mnangagwa also said the government would engage banks with a view to pushing them to increase daily withdrawal limits.

Source: NAM NEWS NETWORK

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