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Bond notes split Zimbabweans

by Staff reporter
27 Oct 2016 at 07:31hrs | Views

Days before the introduction of bond notes, deep-rooted uncertainty has gripped the nation as the Reserve Bank of Zimbabwe (RBZ) takes a trajectory that might make or break the nation depending on whether it would be allowed to enjoy autonomy in discharging its mandate by those who wield political influence.

A siege mood has enveloped a shattered populace in the wake of the impending bond notes, described by President Robert Mugabe as a surrogate currency to the United States dollar - the dominant unit in the basket of currencies underpinning Zimbabwe's multi-currency regime.

It has become inevitable that the monetary authorities should act.

The liquidity crisis has worsened and business has slowed down to a crawl across all sectors of the economy, such that the growth projected this year by Finance Minister Patrick Chinamasa as well as the slump forecast by the International Monetary Fund (IMF) could be revised downwards once again.

The IMF projects the economy to shrink by -0,3 percent, from an earlier forecast of 1,4 percent. As expected, government's forecasts are slightly higher.

Source - Fin Gaz