Zimbabwe has no plans to introduce notes higher than $50

Zimbabwe is working on introducing $50 notes into the market but has no plans to bring in $100 and $200 notes, central bank governor John Mangudya said.

He was dispelling media reports that the country was planning to introduce higher denomination notes of up to $200.

One business leader even suggested that Zimbabwe introduce a $2 000 note which he said was the equivalent of US$20.

The Zimbabwe dollar is currently trading at $82.09, the rate determined by yesterday’s foreign currency auction.

Currently Zimbabwe has $2, $5, $10 and $20 notes only.

President Emmerson Mnangagwa’s administration is keeping a tight rein on money supply and this has enabled the local currency to stabilise from 15 September last year.

A monetary policy committee set up in September 2019 seems to be dictating the pace of monetary reform after teething problems that were centred on differences between the central bank governor and Finance Minister Mthuli Ncube.

Mnangagwa had to intervene after Mangudya made pronouncements that had not been agreed by the monetary policy committee and reversed policies announced by Ncube.

Things have been on track since.

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