Zim to issue cash notes soon, says Finance Minister
Aug 20 2019 12:08
Ray Ndlovu
Zimbabwe will issue new notes and coins soon to replace the country’s quasi currency that was introduced three years ago in a failed attempt to counter a crippling shortage of cash and that’s pushed inflation to the highest rate since 2008.
The return to a fully fledged local currency exchangeable outside the country’s borders will be backed by an undisclosed amount of foreign-exchange reserves, gold and loans, Finance Minister Mthuli Ncube said in an interview on August 15 in the capital, Harare.
A Treasury spokesman on Monday said it first needed to compile data on the country’s reserves before commenting on how much foreign exchange would be used to back the new currency.
“We already have our own local currency, but this will be the first Zimbabwe dollar notes which will trade at parity to the bond notes,” Ncube said.
The southern African nation abandoned the Zimbabwe dollar in 2009, after a bout of hyperinflation, in favor of a basket of currencies including the US dollar and the rand. In a bid to deal with the subsequent cash shortages, it introduced so-called bond notes, and RTGS$ in their electronic form, which aren’t accepted outside the country.
Ncube reintroduced the Zimbabwe dollar in June, accompanied by a ban on the use of foreign currencies. This led to a rapid erosion of spending power with the local dollar trading at almost 10 to the greenback. Bond notes were officially said to be at parity as recently as February.
Source: Fin24
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Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
Aug 20 2019 12:08
Ray Ndlovu
Zimbabwe will issue new notes and coins soon to replace the country’s quasi currency that was introduced three years ago in a failed attempt to counter a crippling shortage of cash and that’s pushed inflation to the highest rate since 2008.
The return to a fully fledged local currency exchangeable outside the country’s borders will be backed by an undisclosed amount of foreign-exchange reserves, gold and loans, Finance Minister Mthuli Ncube said in an interview on August 15 in the capital, Harare.
A Treasury spokesman on Monday said it first needed to compile data on the country’s reserves before commenting on how much foreign exchange would be used to back the new currency.
“We already have our own local currency, but this will be the first Zimbabwe dollar notes which will trade at parity to the bond notes,” Ncube said.
The southern African nation abandoned the Zimbabwe dollar in 2009, after a bout of hyperinflation, in favor of a basket of currencies including the US dollar and the rand. In a bid to deal with the subsequent cash shortages, it introduced so-called bond notes, and RTGS$ in their electronic form, which aren’t accepted outside the country.
Ncube reintroduced the Zimbabwe dollar in June, accompanied by a ban on the use of foreign currencies. This led to a rapid erosion of spending power with the local dollar trading at almost 10 to the greenback. Bond notes were officially said to be at parity as recently as February.
Source: Fin24
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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