The Reserve Bank of Zimbabwe (RBZ) has announced a number of interventions to ease the prevailing crippling cash shortages, stabilise and stimulate the economy.
In a statement, the central bank says it will soon introduce bond notes valued at $200 million amongst other proposed measures designed to ease an ongoing liquidity crisis. Banks in the country have in the past weeks been struggling to meet the demand for cash, thereby limiting cash withdrawals.
To address the cash crisis, RBZ Governor John Mangudya has said the bank will introduce “Zimbabwe Bond Notes” in denominations of $2, $5, $10 and $20 “as an extension of the current family of bond coins for ease of portability”.
Daily withdrawals will also be limited to US$1,000, 1,000 euros (about US$1,150) or 20,000 rand (US$1,350).
The proposed Zimbabwe Bond Notes will be introduced in two months. Following the announcement, there are fears that the move is the government’s plan to bring back the Zimbabwe dollar, which was discarded in 2009 following a sustained period of hyperinflation and shortage of goods and commodities.
Zimbabweans are taking to Twitter, using the hashtags #BondNotes, #BondCoins and #Zimdollar to share their opinions on the central bank’s proposal.
RBZ introducing bond notes.Is this the return of the Zim$ through the back door?
— Obert Gutu (@GutuObert) May 4, 2016
We will accept bond notes just like we did the coins.
We are passive. Doscile. irrelevant as a generation. #BlogThat
— Kuda Musasiwa (@begottensun) May 5, 2016
Find us our 15 Billion than bring this Bond notes
— Ebenezer (@PraleC) May 5, 2016
Critics of bond notes criticised bond coins & always criticise any solution to Zim challenges & never take responsibility for anything!
— Prof Jonathan Moyo (@ProfJNMoyo) May 4, 2016
The Zim govt is back to old ways – creating money out of nothing Perhaps this is the miracle money the "prophets" were on about! #bondnotes
— Alex T Magaisa 🇿🇼 (@Wamagaisa) May 4, 2016
Instead of hiding behind #bondcoins,RBZ needs to urgently call 4 a major eco summit to discuss currency reform & the national payment system
— Deprose Muchena (@DeproseM) May 5, 2016