Former banker and Treasury secretary George Guvamatanga told the media today: “We want to manage money supply. We are aware the money isn’t adequate and this will be addressed. You don’t start by bringing in $500 notes.”
He said bond notes and coins will be phased out gradually.
Zimbabwe is currently experiencing serious cash shortages.
The Reserve Bank of Zimbabwe said it would be injecting $1 billion into the market but will do so gradually.
Zimbabwe needs at least $2.2 billion in circulation but currently has less than a billion.
Cash in circulation seems to be generally a problem in Africa.
While China has US$25 trillion in circulation, Egypt, which has the highest cash in circulation in Africa, has US$197 billion in circulation
Top 10 Countries With the Most Stock of Broad Money
- China: $25T
2. U.S.: $14T
3. Japan: $8.9T
4. Germany: $3.3T
5. U.K.: $3.1T
6. South Korea: $2.2T
7. India: $2.1To
8. Hong Kong: $1.8T
9. Brazil: $1.8T
10. Italy: $1.7T