Economic crisis

ECONOMIC DEVELOPMENTS REPORT

John Robertson, Zimbabwe

17 May, 2016

Zimbabwe:  Economic Developments - Second Quarter, 2016

Bond notes

The Reserve Bank’s statement that, in order to ease the shortage of bank notes in the country, it plans to place exchangeable tokens into circulation by means of a five percent export incentive bonus, has been met with severe misgivings. The so-called bond notes are to be tied to exports of about US$250 million a month, so 5% of that amount would place an additional US$12,5 million-worth of buying power a month at the disposal of mainly the exporters of gold, platinum and tobacco. Working to a maximum of US$200 million in bond notes, these tokens would therefore trickle into the monetary system over a period of 16 months. 

 

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