Last week, governor of the Zimbabwean Reserve Bank, John Mangudya announced that the country will be printing its own version of the US Dollars to curb the scarcity of US Dollars, the main currency favored by Zimbabweans.
The opposition has however condemned this plan, calling it ‘madness’.
“The printing of bond notes will be the death knell to this economy,” the main opposition party, the Movement for Democratic Change (MDC), said in a statement.
“Zimbabweans have walked this road before. They have not forgotten the dark days when they were poor quintillionnaires.”
The US Dollar as well as the South African Rand and Chinese Yuan were introduced into the Zimbabwean economy in 2009 due to a severe case of hyperinflation that rendered the Zimbabwean Dollar (its official currency) useless.
Zimbabweans however prefer to use the US Dollar over the other two currencies due to its strength against the others. The demand for the US Dollar coupled with a shortage in the supply of the currency led the Reserve Bank governor, John Mangudya to come up with new plans.
The measures included; setting a limit on the amount of USD taken out of the country–not more than $1,000, and the introduction of bond notes also known as the Zimbabwean printed US Dollars.
The MDC find these new policies quite unfavorable, especially the introduction of the bond notes. The party is looking to rouse the public against accepting the policies.
“The MDC is preparing a robust response to this madness and the party reserves its right to mobilize the people against this ill-advised decision which is certainly not backed by economic logic,” the party said.
In 2014 some bond coins were introduced into the Zimbabwean economy but that did not work out as the Reserve Bank had planned. The bond coins will resurface with the introduction of the bond notes will come in denominations of $2, $5, $10 and $20.
The bond notes which will be supported by $200 million from the Africa Export Import Bank will be introduced into the economy in two months.