Why Zimbabwe is Printing Hundreds of Millions In US Dollars
Zimbabwe will print its own version of the U.S. dollar to abate its worsening cash crisis.
According to a press release from central bank governor John Mangudya, the deficit-ridden country will print bond notes in denominations of $2, $5, $10, and $20, which are meant to have the same value as their USD equivalents in the country. The IOU currency will be backed by $200 million from the Africa Export Import Bank.
The measure is intended to help the country's cash deficit. Zimbabwe ditched its own currency in 2009 amid hyperinflation. Since then, citizens have used the U.S. dollar, the South African rand, the Chinese yuan, and the British sterling. But according to the BBC, there has been a shortage of U.S. bank notes in the country, leaving some Zimbabweans high and dry when they go to withdraw funds from the bank.
Mangudya also announced restrictions on cash and ATM withdrawals, as well as limits on how much cash people can take outside the country.
The new notes are expected to be in circulation within the next two months.