Business

Zimbabwe issues fresh banknotes to ease cash shortages

Wednesday, November 13, 2019

Print this page Email A Friend!


HARARE, Zimbabwe (AFP) — Cash-strapped Zimbabweans began using new banknotes and coins yesterday, as the nation's central bank seeks to ease chronic shortages.

The Zimbabwean dollar is being gradually reintroduced, after being rendered worthless by decades of economic mismanagement under former President Robert Mugabe.

That forced the country to rely on US dollars for a decade.

New two- and five-dollar notes were disbursed by the central bank on Monday.

One Zimbabwean dollar is currently worth around six US cents.

“Bond” notes — a legal tender pegged to the US dollar — were introduced in 2016 to alleviate chronic cash shortages and ease a transition back to Zimbabwean dollars.

These were then supplemented with electronic RTGS dollars in June 2019.

But cash remains hard to come by, and most people use mobile money and now-banned foreign currencies to pay for goods.

Withdrawals remain capped at a maximum of 300 new Zimbabwean dollars (US$18) per week per customer — which buys less than three kilogrammes of beef.

Account holders wait long hours to draw cash.

In Zimbabwe's capital Harare, bank customers remained sceptical.

“There is no difference,” Milton Mushangwe, 37, told AFP. “The withdrawal limits remain the same.”

“We are still getting the same small amount of 100 dollars or less,” added another customer, Richard Govha.

Zimbabwe's reserve bank said that only 31 million new Zimbabwean dollars (less than US$2 million) had been disbursed so far, of a planned total of one billion that is to be drip-fed into the system over the next six months.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaperlive


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT