Zimbabwean central bank to introduce bond notes Monday

The Reserve Bank of Zimbabwe said Saturday bond notes will be introduced into the market on Nov. 28, ending months of speculation over their release.

The central bank announced in a statement that the notes would be introduced through formal banking channels in small denominations of 2 and 5 dollars.

"The initial release of bond notes shall be in an amount of 10 million dollars in denominations of 2 dollars and 2 million dollars in 1 dollar bond coins," the central bank said.

It said individual withdrawal of the notes will be limited to a maximum of 50 dollars per day and 150 dollars per week to curb abuse.

No new accounts would be opened as the bond notes will be deposited into existing U.S. dollar accounts, the central bank added.

It said features of the notes will be released simultaneously with the bond notes.

The notes, which will trade at par with the U.S. dollar, are backed by a 200-million-dollar facility from Africa Export-Import Bank.

The central bank first announced plans to introduce the bond notes in May as part of measures to address biting cash shortages in the economy.

However, many Zimbabweans fear the notes could signal a return to local currency ditched in 2009 after being ravaged by hyperinflation in favor of multiple currencies.

The central bank has reassured the nation that it would not print more than what is backed by the 200-million-dollar facility. Endit