Zimbabwe’s Mugabe Issues Law to Issue Bond Notes
By Godfrey Marawanyika
(Bloomberg) — Zimbabwean President Robert Mugabe has used his presidential powers to amend the central bank’s regulations to allow the issuance of bond notes, effective immediately; authorities expect the move to ease dollar shortages.
- In a statutory instrument released late Monday, using presidential powers, “the tender of payment of bond notes issued by the bank shall be legal tender in all transactions as if each unit of a bond note is exchangeable for One United States dollar,” Mugabe said in the government Gazette
- “The issuance by the Bank of the bond coins in circulation before the promulgation of these regulations”
- In a separate statement, Finance Minister Patrick Chinamasa said “the legality of bond notes as legal tender in Zimbabwe should be put beyond any measure of doubt”
- Chinamasa said the central bank will “with immediate effect start the process towards the issuance of bond notes as a legal tender in Zimbabwe”