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Zimbabwe to print own version of US dollar | Zimbabwe to print own version of US dollar |
(35 minutes later) | |
Zimbabwe is set to print its own version of the US dollar in order to ease a cash shortage in the country. | Zimbabwe is set to print its own version of the US dollar in order to ease a cash shortage in the country. |
Central bank governor John Mangudya said the cash, known as bond notes, will be backed by $200m (£140m) support from the Africa Export-Import Bank. | Central bank governor John Mangudya said the cash, known as bond notes, will be backed by $200m (£140m) support from the Africa Export-Import Bank. |
The specially-designed two, five, 10 and 20 dollar notes will have the same value as their US dollar equivalents. | The specially-designed two, five, 10 and 20 dollar notes will have the same value as their US dollar equivalents. |
Zimbabwe introduced the US dollar after ditching its own currency in 2009 following sustained hyperinflation. | Zimbabwe introduced the US dollar after ditching its own currency in 2009 following sustained hyperinflation. |
Since then Zimbabweans have been using the dollar as well as a number of other foreign currencies including the South African rand and the Chinese yuan. | Since then Zimbabweans have been using the dollar as well as a number of other foreign currencies including the South African rand and the Chinese yuan. |
Africa Live: More on this and other African news stories. | |
But the BBC's Brian Hungwe in the capital, Harare, says that bank customers are not always able to withdraw the amount of US dollars they want because of a shortage of dollar notes in Zimbabwe. | But the BBC's Brian Hungwe in the capital, Harare, says that bank customers are not always able to withdraw the amount of US dollars they want because of a shortage of dollar notes in Zimbabwe. |
The governor stressed that the issuing of bond notes was not the first step on the way to reintroducing the defunct currency, the Zimbabwe Herald newspaper reports. | The governor stressed that the issuing of bond notes was not the first step on the way to reintroducing the defunct currency, the Zimbabwe Herald newspaper reports. |
Mr Mangudya also introduced a number of other measures to steer people away from using US dollar cash. | Mr Mangudya also introduced a number of other measures to steer people away from using US dollar cash. |
This includes setting a $1,000 limit on how much cash can be taken out of the country. | This includes setting a $1,000 limit on how much cash can be taken out of the country. |
He wants to encourage people to make greater use of the rand since a large portion of Zimbabwe's trade is with South Africa. | He wants to encourage people to make greater use of the rand since a large portion of Zimbabwe's trade is with South Africa. |
But our correspondent says that people are reluctant to hold rands as they are not confident that the currency will maintain its value against the dollar. | But our correspondent says that people are reluctant to hold rands as they are not confident that the currency will maintain its value against the dollar. |
He adds that not all shops and traders accept the full range of currencies officially in use. | He adds that not all shops and traders accept the full range of currencies officially in use. |
The central bank brought in so-called bond coins of one, five, 10 and 25 cents, pegged to the US dollar, in 2014. | The central bank brought in so-called bond coins of one, five, 10 and 25 cents, pegged to the US dollar, in 2014. |
Mr Mangudya said the bank was still working on a design for the new notes, but they should be in circulation "within the next two months", the Herald reports. | Mr Mangudya said the bank was still working on a design for the new notes, but they should be in circulation "within the next two months", the Herald reports. |