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Zimbabwe Banks Run Out of Bond Notes

Un vendeur de rue montre les nouveaux billets dans la capitale de Harare, Zimbabwe, le 28 novembre 2016.

Deputy governor of the Reserve Bank of Zimbabwe, Khuphukile Mlambo, says most banks are demanding more supplies of bond notes after running out of the currency introduced on Monday by the central bank amid public resistance.

Speaking at a meeting residents of Zimbabwe’s second largest city, Bulawayo, Mlambo said it is unlikely that the RBZ would introduce more bond notes to boost money supply.

He said the central bank released bond notes with a combined value of $12 million into the money market on Monday and indications are that the money is now in the hands of bank clients.

He noted that some illegal money changers are grabbing the money from local people and re-banking it to realize their profits.

“Stop making any form of illegal transactions as you are being cheated,” said Mlambo.

Some illegal money deal are exchanged Zimbabwe’s bond for at least three United States dollar.

Local residents told Mlambo that they are unhappy about the introduction of the bond notes, stressing that Zimbabwe will soon plunge into a financial crisis similar to the historic hyperinflation that gripped the country between 2000 and 2008, leading to the abandonment of the local dollar.

Parliament is currently conducting a public outreach program to seek people’s views about passing into law the Reserve Bank of Zimbabwe Amendment Bill, which would ensure a long shelf life of bond notes.

The country used some RBZ laws and presidential powers when it introduced the bond notes, a move that has been widely criticized by most Zimbabweans.

The Zimbabwe constitution compels parliament to consult locals before passing any law.