Zimbabwe to reintroduce its own currency
The Reserve Bank of Zimbabwe has announced on 4 May 2016 that it will once again start issuing its own banknotes. Zimbabwe discarded the Zimbabwean dollar in June of 2015 since it became worthless after hyperinflation crippled the economy. The US dollar is the main currency used in Zimbabwe these days.
But now the country also has to deal with cash shortages. To solve this problem, the Reserve Bank has plans to introduce new banknotes. The so-called Zimbabwe Bond Notes will come in denominations of $2, $5, $10 and $20. The new notes will be used side-by-side with the US dollar.
Furthermore there will be a limit for daily cash withdrawals from banks to $1,000. Also the amount of cash individuals can take out of the country will be slashed. Bank governor John Mangudya has said the notes will come into circulation within weeks. The first reactions however are not very positive as a lot of people don't trust the new currency which brings back memories of the days of worthless billion-dollar banknotes.
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