Categories: Stories

New bond notes-key questions answered

Is this the return of the Zimbabwe dollar?

That is a fear shared by many, given that Zimbabwe is now effectively printing its own money. According to RBZ, however, bond coins and notes can only operate under the multi-currency regime.

 

RBZ governor Mangudya also told media on Wednesday he has no plans to introduce a local currency, at least not until “the fundamentals are right.” With production low and no forex reserves, the local unit would only face the fate of the Zimdollar, which collapsed and lost all value.

In 2015, the Zimdollar was “demonetised”, or taken completely out of circulation. This does not mean a local currency will not be reintroduced one day, but RBZ says it may “take years to return”. In history, no country that has adopted the US dollar as its main currency has ever reverted to its own currency.- The Source

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This post was last modified on May 6, 2016 10:01 am

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Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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