Home Business & Economy President Mugabe effects law for introduction of new currency

President Mugabe effects law for introduction of new currency


Zimbabwe's President Robert Mugabe addresses supporters gathered to celebrate his 92nd birthday in Masvingo February 27, 2016. Picture taken February 27, 2016.  REUTERS/Philimon Bulawayo

Zimbabwean President Robert Mugabe has issued a decree clearing the way for the introduction of “bond notes” in the country.

The idea has been a cause for concern since it was first announced with many fearing that it could be a back route for the introduction of domestic currency associated with hyperinflation and abandoned in 2009. The bond notes are meant to ease biting cash shortages that have gripped the country since March.

President Mugabe used his presidential powers late on Monday  to amend the Reserve Bank of Zimbabwe Act, designating bond notes as legal tender that will be equivalent to the U.S. Dollar.

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