Zimbabwe releases $12 million more in bond notes, eases withdrawal limits

The Reserve Bank of Zimbabwe has ploughed $12 million more bond notes into the market and increased the daily withdrawal in bond notes to $100 a day but a maximum of $300 a week.

Zimbabweans were only allowed to withdraw $50 a day in bond notes and a maximum of $150 a week when the notes were introduced last month.

There were fears that the introduction of bond notes would fuel hyperinflation as the cash-strapped government would overprint the notes not only for the population but to meet the salaries of civil servants who have been pressing the government to pay them before Christmas.

The Reserve Bank has, however, so far released less than half the $75 million it said would be release to the market by the end of this month.

“The Bank is encouraged by the smooth circulation within the domestic economy of bond notes which were primarily introduced to finance the export incentive scheme of up to 5% payable to exporters of goods and services and diaspora remittances,” Central Bank governor John Mangudya said.

“A cumulative total of $6.2 million bond notes have been deposited by the banking public at banks as at the 16th of December 2016. Against this background, bond notes shall fortuitously and subserviently go a long way to mitigate cash shortages within the economy.”

Mangudya, however, said it will take time to clear queues at the banks.

“Clearing of cash queues at banks can never be an overnight event. It is a process,” he said.

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