2017-03-11 Sat

Bond notes are not adding liquidity to the economy or increasing exports of Zimbabwe as it was intended but they have become popular among collectors.

The government claims that they can be exchanged for U.S. dollars but actually, they don’t have an exchange value outside Zimbabwe. There are reports that they are also exchanged for a discount to U.S. currency which could increase inflation.

However, these bond notes and coins have a demand among collectors and are also being sold online. The $2 note has a market value of $7, the purple $5 note is being sold for $17 U.S and the $100 trillion note of 2008 is being sold for $35.

Zimbabwe has been facing hyperinflation in the recent years making banknotes almost worthless. This inflation was created by President Robert Mugabe who said in 2007 that notes will be printed for projects that lack funding. In 2016 new bond notes and coins were released to replace inflationary notes, but there has been no respite.