2016-05-16 Mon

Zimbabwe will soon print its own version of the U.S. dollar to reduce cash shortage. As per official reports, specially designed $2, $5, $10 and $20 notes, known as “bond notes” will have the same value as their U.S. dollar counterparts. Africa Export-Import Bank is investing $200 million for this initiative.

Zimbabwe scrapped its own currency completely in 2009 due to high inflation. Since then, the U.S. dollar, the South Africa rand and Chinese yuan have been used widely in Zimbabwe.

Zimbabweans are encouraged to use more rands as the country has better trade relations with South Africa. Many prices and contracts are set in U.S. dollars and there is a shortage of U.S. currency, due to which bond notes have been introduced. Also citizens feel that the rand will not hold its value against the dollar.

Designs for the new notes are being worked out. For smaller transactions, new 1-, 5-, 10-, 25- and 50-cent bond coins of simple but distinctive designs were introduced from December 2014 to March 2015. Prior to that, lollipops, chewing gum and pens were being used by some shops as small change substitutes.