RBZ Governor: bond notes definitely coming next month

Reserve Bank of Zimbabwe Governor John Mangudya said government is trying to bring back the Zimbabwe dollar through the back door by introducing bond notes.

He said the coming of the bond note is a measure to incentivise exporters and to improve on production.

Addressing Zimbabwe National Chamber of Commerce breakfast meeting at the HICC Thursday, Mangudya said bonds notes will definitely be in circulation next month.

The notes will be in $2 and $5 denominations.

“Awareness campaigns on the bond notes will start on the 31st of October across the country

‘Usage of the South African Rand as a national currency is out of the question since Zimbabwe is not a member of the rand monetary union which has countries such as Lesotho, Swaziland and Namibia.

“Measures will be put in place to counter a hyper-inflationary economic climate adding that is the reason why the bond notes are in smaller denominations.

With the current rate of exports, the US$200 million Afreximbank facility will be exhausted when exports hit US$6 billion mark and the bond notes will be introduced in the market gradually to ensure scarcity of the notes.

The introduction of the five percent exporters’ bonus scheme is also meant to stimulate export production which is critical for economic growth.