http://www.polity.org.za
Deepening Democracy through Access to Information
Home / News / African News RSS ← Back
Paper|United States|Zimbabwe|Bank|Bank Cards|Bank Queues|Point-of-sale Devices|Service|John Mangudya|Sunday Mail
Paper||Service||
paper|united-states|zimbabwe|bank|bank-cards|bank-queues|point-of-sale-devices|service|john-mangudya|sunday-mail
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Verification Image. Please refresh the page if you cannot see this image.

Sponsored by

Close

Article Enquiry

No more Zimbabwe bond notes for now – Bank governor

Verification Image. Please refresh the page if you cannot see this image.
Close

Embed Video

No more Zimbabwe bond notes for now – Bank governor

24th April 2017

By: News24Wire

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

Are you hoping for respite from Zimbabwe's cash squeeze?

It's not coming any time soon if Zimbabwe's central bank governor John Mangudya is to be believed.

Advertisement

Mangudya told the state-controlled Sunday Mail that the bank has decided "not to continue issuing out new bond notes into the market".

That's despite the fact that the limit the authorities set for the total number of new "bond notes" has not yet been reached.

Advertisement

In 2016, the limit was set at $200-million. But only $121-milion worth of the new notes have been released. (Although there's some confusion over that figure: Mangudya has also talked about $130-million worth of bond notes being already in circulation.)

Unusual to see US bills

Bond notes are a special-to-Zimbabwe currency that were introduced in late November amid wide fears they would spark inflation and a return to the dark days of the last hyper-inflationary crisis, which peaked around 2007 - 2008.

Bank queues, however, have persisted, particularly in the weeks surrounding civil servants' pay days, as banks limit withdrawals.

These days it is unusual to see real US bills on the streets or in shops. But even bond notes are not easy to get hold of.

Electronic 'zollars'

The authorities want Zimbabweans to use bank cards but there are fears that the "zollars" being transferred electronically are not backed by deposits.

Vendors and many small stores do not have point-of-sale devices, and doctors and service providers may often still want hard cash.

Mangudya, who's staked his career on the success of the bond notes in curbing what he sees as the incessant drain of hard cash from Zimbabwe's squeezed economy, said the decision not to up the number of bond notes is due to the behaviour of "bad characters" who've been hoarding cash.

Bad characters

"Since last year... we have suffered due to some detractors who have bad intentions of hoarding and externalising cash in a bid to destabilise our recovery framework but we won't fold hands to leave them to do as they will," Mangudya was quoted as saying.

Three companies were charged this month for not banking their cash since June 2016, the paper reported.

EMAIL THIS ARTICLE      SAVE THIS ARTICLE

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now
Register Close