Home » Entertainment » UPTAKE OF ZIMBABWE’S BOND NOTES OVERWHELMING, SAYS FINANCE MINISTER

Zimbabwean Finance and Economic Development Minister Patrick Chinamasa says acceptance of bond notes, a new legal tender introduced by the government to ease cash shortages, has been "beyond expectations".

Upon their introduction last week, the bond notes, which are pegged at par with the United States dollar, received mixed reaction in the market as some traders accepted them while others rejected them.

Opposition political parties and other social activist groups had pushed hard for the public to reject the bond notes, which they viewed as a back door re-introduction of the discarded Zimbabwean dollar.

Presenting the 2017 National Budget in Parliament Thursday, Chinamasa said acceptance of bond notes had surpassed expectations. "A total of 17 million USD worth of bond notes has so far been disbursed and the uptake has been beyond our expectations," he said.

Chinamasa said the bond notes would go a long way towards stimulating exports and easing cash shortages. "The broadening of the range of multi-currencies through the addition of the 1.0 dollar bond coin and the two and five dollar bond notes as an incentive to increased production for exports should spur private spending on the back of cash and liquidity improvements, that way boosting aggregate demand," he said.

The Reserve Bank of Zimbabwe (RBZ) has so far only issued one-dollar bond coins and two-dollar bond notes with the five-dollar bond note denomination yet to hit the market.

Source: NAM NEWS NETWORK

Archives