U.S. Markets closed

Zimbabwe Central Bank Ready to Release Cash After a Decade

Ray Ndlovu
1 / 2

Zimbabwe Central Bank Ready to Release Cash After a Decade

(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on Twitter

Zimbabwe’s central bank is preparing to release new Z$2 ($0.13) and Z$5 banknotes that will come into circulation this month after a decade-long absence, according to a release in a government gazette.

Since the reintroduction of the Zimbabwe dollar as the sole legal tender in June, transactions have been conducted in bond notes and coins, which, until February, had been pegged at par to the U.S dollar.

The Monetary Policy Committee is boosting the domestic availability of cash through a gradual increase in supply over the next six months, Central Bank Governor John Mangudya said on Oct. 29.

Read here about money shortages in Zimbabwe

Zimbabwe is suffering rampant inflation, which stood at 17.7% a month in September. The Zimbabwe National Statistics Agency isn’t reporting year-on-year figures until February 2020, arguing that it needs the time to collect comparable data after the introduction of the new currency earlier this year.

To contact the reporter on this story: Ray Ndlovu in Johannesburg at rndlovu1@bloomberg.net

To contact the editors responsible for this story: Gordon Bell at gbell16@bloomberg.net, Renee Bonorchis, Siraj Datoo

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.