Zimbabwe bank governor urges calm over bond notes plan

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The plan by Zimbabwe’s central bank is to issue what it calls bond notes to deal with the shortage of dollar cash has been met with skepticism in some quarters.

Zimbabwe dropped its own currency in 2009 after a bout of hyper-inflation.

The central bank says the notes will be backed by a US dollar loan, but critics fear that this opens the way to the government printing its own money and therefore re-igniting inflation.

The Herald newspaper reports that the bank’s governor John Mangudya has tried to calm fears by saying that the new bond notes would only come in small 2 and 5 dollar denominations.

“The bank has heard and taken note of the public’s concerns, fear, anxiety and skepticism of bond notes which all boils down to the general lack of trust and confidence within the economy,” he said.

In recent months there have been a series of demonstrations against the introduction of bond notes:

 

Source: BBC