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Zimbabwe's central bank said on Saturday it will circulate $10 million worth of new bond notes on Monday, a quasi-currency that authorities expect to ease a serious cash crunch, but will limit withdrawals to curb any abuses.
The Reserve Bank of Zimbabwe (RBZ) first announced the plan in May to issue bond notes to address chronic cash shortages and supplement dwindling U.S. dollars that have been in circulation for the past seven years.
But many Zimbabweans are sceptical about the scheme after a 2008 multi-billion percent inflationary meltdown caused by rampant money-printing. The new plan has already caused a run on the banks as Zimbabweans empty their accounts of hard currency.
The bond notes will be officially interchangeable 1:1 with the U.S. dollar.
Source: Reuters
See also: India grapples with the effects of withdrawing 86% of cash in circulation
(Score: 0) by Anonymous Coward on Tuesday November 29 2016, @05:16AM
They always start at 1:1 to the USD. And then it always goes to heck. Al that varies is the speed. Zim currency is only backed by how much mineral wealth China can strip mine out while propping up Mugabe.
And the "West", don't forget, eagerly helped achieve this disaster in the 1970's. Now 10 million people suffer, 12 drive new Mercedes and the Chinese have tons of chrome, gold, etc on tap on demand.