With the introduction of
Zimbabwe’s controversial bond
notes imminent, the local
banks have been flooded by
Zimbabweans desperate to
withdraw their funds in legal
currency, with fears that the
artificial currency could lead to
another bout of hyperinflation.
The last time that this
happened, Zimbabwe
set a world record – with
hyperinflation of more than
231 000 000%.
Despite persistent rumours
that the Zimbabwe authorities
will delay the introduction of
the controversial bond notes,
even to as late as February
or March, John Mangudya,
governor of the Reserve Bank
of Zimbabwe, has just said
they will be out in two weeks,
according to state-controlled
Sunday News.
The report quoted
Mangudya saying: “The bond
notes….will be released….at the
end of this month.”
Zimbabwe’s vice-president,
Emmerson Mnangagwa, added
more fuel to the fire when
he was quoted by the other
government newspaper, the
Herald, saying that these bond
notes would be a currency.
The problem for the banks
is the shortage of foreign
currency, particularly the highly
desirable US dollar, which was
introduced as legal tender –
along with other currencies – in
2009. This has led to the banks
introducing new service terms,
including cash withdrawals
being subject to availability of
funds, and reserving the right
to pay funds in one or more
currencies recognised at that
time as legal tender.
Latest to join the throng of
Zimbabwean bodies fighting
against the bond note is the
Zimbabwe Congress of Trade
Unions (ZCTU), with plans for
industrial action against this
artificial currency.
It has pressed the Zimbabwe
government to instead
adopt the SA rand as an
export incentive, since SA is
Zimbabwe’s biggest trading
partner.
Imminent bond notes spark Zim banking frenzy
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