Cash-strapped Zimbabwe set to devalue its bond note currency
The decision to amend the value of bond notes follows submissions by industry and businesses
Zimbabwe’s central bank will on Wednesday present its monetary policy statement amid indications that authorities will devalue the bond note currency which had been pegged to the US dollar. The controversial bond note was introduced in 2016 at 1:1 with the dollar but now trades at 1:3.5 on the black market where the bulk of the country’s foreign currency is traded. A top official at the Reserve Bank of Zimbabwe told Business Day the monetary policy statement would be presented on Wednesday, refusing to give any details on its contents. “The governor will present it tomorrow (Wednesday) but obviously we will have to wait for that and comment afterwards. We are also going to have a breakfast meeting on Friday to discuss the implications of the policy,” the official said. The official told Business Day the central bank will peg the bond notes at par with parallel market rates, which had become the standard to ascertain the real value of the surrogate currency. “The rates prevailing at ...
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