Zimbabwe releases $5 bond notes earlier than previously announced

The Reserve Bank of Zimbabwe yesterday released $15 million in $5 bond notes bringing the total value of bond notes into the market to $88 million.

The central bank had said earlier it would release the $5 notes to add on to the $2 notes only in March. The early release of the $5 note could therefore be a sign that the central bank is satisfied that the surrogate currency has stood its ground against the US dollar.

Bond notes were introduced in November last year to ease the cash crisis and have been met with mixed reactions largely because they cannot be traded outside the country. There were also strong fears that the bond notes would be trashed as soon as they got into the market.

Zimbabwe intends to release $200 million in bond notes into the market.

Recent reports said only $300 million was circulating in the country when it needed $900 million.

The introduction of the $5 notes will ease the bulk of notes one has to carry as those allowed to withdraw $300 in bond notes had to carry 150 which will now be reduced to 60.

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