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Zimbabwe not phasing out bond notes: finance minister

Source: Xinhua| 2018-01-18 00:29:56|Editor: yan
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HARARE, Jan. 17 (Xinhua) -- Zimbabwean Finance Minister Patrick Chinamasa said Wednesday the new government has no plans to phase out bond notes, the surrogate currency introduced in 2016, to tame cash shortages in the economy.

Reacting to recent media reports alleging that government intended to phase out the notes soon, Chinamasa said in a statement that the economic fundamentals were not yet ideal for the country to move out of the multiple currency regime adopted in 2009.

The Southern African country adopted use of multiple currencies in 2009 after its currency had been rendered worthless by hyperinflation.

The U.S. dollar has been the main transacting currency but it has been in short supply since 2015 due to low exports and externalization.

"Let me reiterate the fact that government has no plans to phase out bond notes. The government is quite aware that the most important economic fundamentals that the country would need to achieve before de-dollarization begins are foreign exchange reserves sufficient to cover at least three months of imports, sustainable economic growth path and reducing fiscal deficit to sustainable levels," the minister said.

He said the government is placing more emphasis on achieving these economic fundamentals, including enhancing consumer and business confidence, in the medium term.

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