The reserve bank has announced that Zimbabwe will have a new currency in the next two weeks. He said the new currency will be released into the sysytem gradually in a bid to ease cash shortages currently being experienced in the country. The move by the central bank is expected to bring nomalcy and restore domestic currency which had since been abandoned after having been in operation for a decade.
The governor could however not name the currency and said it will be used alongside the bond notes and coins at a parity of 1:1. The new currency will have $2 and $5 notes and coins. The introduction of the new currency comes at a time when the country is facing severe shortages of fuel, medicine, electricity and the inflation has been skyrocketing to over 500%.
Cash has been scarce with the currency being controlled by the black market and cash barons. For one to access cash in Zim they have to pay extremely high premiums. Ecocash, another cash agent is charging up to 40% for one to get cash. Most people are hopeful that the introduction of the new currency will alleviate such problems.
The governor also assured people that cash withdrawal from banks will be increased to reasonable amounts. Banks are currently giving out paltry amounts such as 50 rtgs, which is enough to buy just a 2kg packet of flour! Querried on the specimens to the new currency, the governor said there are some legal processes that have to be completed first before the specimens can be availed to the public. Some people are skeptical that the circulation of the new currency might trigger another increase in inflation.