It has already successfully done so with bond coins since 2014 which, along with the proposed notes, derive their value comes from a bond facility from the Afreximbank. In 2014, Afreximbank put up a $50 million bond, a form of a loan, for bond coins introduced to ease the shortage of change in the economy. The planned bond notes are backed by a new $200 million loan, also from Afreximbank.
But a senior banker noted that the bond notes and coins are just a local currency by another name, suggesting their introduction was forced upon the central bank by the political establishment and explains the apex bank’s difficulty in selling their legitimacy to a suspicious market.
Whether by design or accident, Zimbabwe is in the local currency era and it is up to the market to decide whether to accept or reject it, the banker said.
It is worth noting that in February 2009, government only formally introduced the multi-currency era long after the market had rejected the hyperinflation ravaged local unit, the banker added.- The Source
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This post was last modified on May 16, 2016 7:08 am
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