$400 million in bond notes to be printed

27 Jun 2019

moneyGovernor John Mangudya revealed that the Reserve Bank of Zimbabwe (RBZ) will print an additional $400 million in bond notes and coins in order to make up for the gap caused by the withdrawal of hard currencies, allAfrica reports.

Earlier in the week, the government announced that the Zimbabwean dollar would be the sole legal tender for all transactions in the country, discarding from the usage of multiple currencies.

Speaking on a radio station from China, Mangudya said: "As we move towards a cashless society, we still need about $400 million to allow people to access cash, so we are going to print that money to cover that gap left by the removal of the multi-currency system.

"We will not print up to levels that will cause inflation as feared by some people.

"Currently, we have about $6-800 million in bond notes and coins. This economy requires about 10% of all deposits in liquidity which comes to about $1-1.5 billion.

"So we will definitely bring in notes and coins in the value of around $400 million," he went on to say.

Mangudya also added that diaspora recipients are to still be received in foreign currencies.

"Recipients of diaspora remittances and other foreign currency payments will still withdraw in hard currencies or choose to get it in Zimbabwean dollar at an interbank rate," he said.

In a statement, the RBZ said that non-governmental organisations, embassies and other foreign organisations may still pay salaries in foreign currency.