Zimbabwe finance minister says "bond notes" to stay for now

Zimbabwe finance minister says "bond notes" to stay for now
Zimbabwean Finance Minister Patrick Chinamasa reacts as he arrives to present his budget at Parliament in Harare
HARARE (Reuters) - Zimbabwe will not stop using "bond notes", a domestic quasi-currency, until the economy fully recovers, Finance Minister Patrick Chinamasa said on Wednesday.

The southern African nation in November 2016 started using bond notes in a bid to ease shortages of U.S. dollars, the country's official currency since 2009.

Since Emmerson Mnangagwa became president last November in the wake of a de facto military coup that removed 93-year-old Robert Mugabe, there has been speculation that bond notes would be scrapped.

"Bond notes will stay until we have our own local currency," Chinamasa told a business meeting in Harare.

The conditions needed to bring back a local currency include foreign currency reserves of more than three months, a lower budget deficit and higher exports and industrial production, Chinamasa said.

The bond notes, which are also in short supply, are pegged at par with the U.S. dollar but trade at a discount on the black market. On Wednesday $1 was equivalent to $1.25 in bond notes.

(Reporting by MacDonald Dzirutwe; Editing by Ed Stoddard)

2018-01-17 12:55:19

© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Most read today
Most read yesterday
Send e-mail to for any enquiries or see Contact Details for phone numbers
Home   •   Terms & conditions   •   PAIA   •   Privacy Policy   •   Security Notice   •   Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa