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Zimbabwe to Roll Out New Currency this November

The Central Bank of Zimbabwe will introduce new dollar banknotes and coins in early November in an effort to ease a cash flow problem.

FILE PHOTO: People walk past the Reserve Bank of Zimbabwe building in Harare, Zimbabwe, February 25, 2019./REUTERS

The Central bank Governor John Mangudya, speaking in his capacity as the chair of the bank’s new Monetary Policy Committee, said the Reserve Bank of Zimbabwe would introduce new Z$2 and Z$5 notes, as well as new Z$2 bond coins.

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Currently, only Z$5 and Z$2 bond notes are in circulation, in addition to bond coins.

Between 2009 and February 2019 Zimbabwe used a multi-currency system with the US dollar as its main currency.

In 2016 it introduced bond notes and coins which, although not currency by law, were used for local transactions and traded at par with the US dollar.

A man holds a Zimbabwean two dollar bond banknote in Harare, Zimbabwe./Getty Images

The decision to introduce new notes is one that is opposed by many economists in Zimbabwe.

Vince Musewe, an economist in Zimbabwe, said an increase in hard cash through introduction of the new Zimdollar notes will drive informal dealings.

“Increase in hard cash will lead to more speculative economic activity led by informal sector resulting in more demand for USD leading to USD rate increasing and more inflation,” said Musewe.

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Written by How Africa

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