Zim taps bond market
ZIMBABWE’S central bank plans to introduce more bond notes in an attempt to plug the country’s worsening cash shortages.
The current bond notes are backed by Egypt’s Afreximbank through a $200-million (about R2.6-billion) loan facility.
According to the Reserve Bank of Zimbabwe governor John Mangudya bond notes worth $170-million are in circulation and the central bank is seeking an additional $500-million facility for a second batch of notes.
“We are negotiating for a loan facility to the tune of $500-million,” Mangudya said at a business seminar last week.
The IMF in its consultations warned that the use of the bond notes would wipe hard currencies from the market.
“US dollars would become increasingly scarce or only be available at a premium,” said the IMF.
A Harare banker said: “Money is not a medium of exchange any more in Zimbabwe. It’s a commodity.”