2016-11-04 Fri

President Robert Mugabe's government introduced bond notes in Zimbabwe on 31’st October as the country faces its worst financial crisis in seven years due to cash shortages and increasing inflation.

Bond notes were introduced to deal with the shortage of US dollar. Zimbabwe stopped issuing its own currency in 2009 due to hyperinflation and ventured into a multi-currency system.

The bond notes are guaranteed by a $200m loan and are equal to the US dollar. The new currency has led to many agitations across the country as people fear that the country might have to face hyperinflation again. Some fear that the introduction of these new notes is the first step towards the return of a domestic currency which has increased net deposit withdrawals and cash hoarding to a great extent.

Opposition political parties are also raising their voices against the introduction of the new notes.