Watch the news & stories in motion: Subscribe to WeeTracker on YouTube
In a bid to ease shortages of the bond note, the Central bank of Zimbabwe will introduce new currency notes and coins in two weeks.
The move comes a decade after the Emmerson Mnangagwa-led country dumped its domestic currency due to hyperinflation.
According to Reserve Bank of Zimbabwe governor John Mangudya, the currency whose name has not been unveiled yet consists of $5 notes and $2 coins which will be interchangeably used at par with bond coins and notes.
The money will be introduced in a phased manner to ensure it does not drive up inflation.
“We are going to be releasing money into circulation. To be precise, within the next two weeks, we will have the new currency,” Mangudya said.
Limits will be raised as to the maximum amount one will be allowed to withdraw.
Notably, the injection will be done through a non-inflationary exchange rate of the RTGS money for physical cash.
“When you are substituting your cash for plastic money, you don’t increase inflation, but what it does, it will help the population…to the extent that people are going to use their money without being charged premiums,” said Dr. Mangudya.
In June this year, the government reintroduced the Zim dollar making it the sole legal tender. Almost immediately inflation increased to 175 percent raising concerns whether the country was experiencing another hyperinflation.
Currently, Zimbabweans are living one of their worst times having to grapple with the rising cost of living, lack of foreign currencies to run businesses, severe fuel shortages, lack of medical supplies and 18-hour daily power blackouts, among many other challenges.
Featured Image Courtesy: Twitter
Found the article interesting ? Follow us on Twitter to see what others are saying about it.
9500+ subscribers are getting our free newsletter on African technology, startups and innovators bi-weekly.
Made with ❤ in Africa