Most ATMs in the economically battered Southern African country of Zimbabwe, where inflation is at about 300%, no longer even give out cash. To address this, and other bigger economic issues, Zimbabwe’s central bank has said that it would introduce a new currency within two weeks to ease a cash shortage that have affected the ailing economy.
“We are going to be releasing the currency, coins and notes … to ensure we don’t starve this market. Within the next two weeks we will have the cash,” John Mangudya, Zimbabwe’s central bank governor said at a news conference in Harare.
Here Is All You Need To Know
- Zimbabwe has been plagued by a shortage of cash for the past three years with most ATMs no longer doling out cash.
- The latest currency intervention is part of a statement of Zimbabwe’s central bank’s monetary policy committee that was set up to find solutions to the country economic crisis.
“The committee felt there was a need to boost the domestic availability of cash in the economy for transactional purposes through a gradual increase in cash supply over the next six months,” he said. “This additional cash injection will be carried out through the non-inflationary exchange of real-time, gross settlement money for physical cash.”
Read also: Zimbabwe Increases Electricity Tariffs By 320% As Daily Power Cuts Worsen
The central bank said the new currency will be circulated together with the bond notes — a pseudo-currency that the country has been using for transactions.
“The new currency won’t have be called bond notes — just two dollars [or] five dollars.”
- Zimbabwe is experiencing its worst economic crisis in a decade, with inflation at more than 300% and is also plagued by a shortage of foreign currency, fuel, electricity and basic foods.
- The country is also in the grips of a currency crisis as Zimbabwe ‘s local currency, which was, at one time, pegged at 1:1 with the US dollar is now trading at 1:20 with the greenback.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world