Do Not Peg The Exchange Rate Of The Bond Note Government Told

Ashok Chakravarti   a University of Zimbabwe economics professor and former government advisor, has told the government not peg the exchange rate of the bond note but should allow it to float freely within the multi-currency system as a first step towards the introduction of a proper local currency.

Addressing delegates at the just-ended Confederation of Zimbabwe Industries annual congress in Bulawayo Chakravarti said that the bond note was a surrogate local currency and not an alternate to the US dollar.

Said Chakravarti :

It (bond note) is over 50% of currency in circulation, The peg between the bond note and US dollar should be removed and it should be allowed to float freely within the multi-currency system.This will be first stepping stone towards the introduction of a proper local currency. (Also) the bond notes released should be limited to $500 million.

More: The Standard

Bond Notes

Bond Notes are a currency of notes backed by a bond that the Zimbabwe government announced on 4 May 2016 by Reserve Bank of Zimbabwe (RBZ) governor John Mangudya. The $2 denomination of the notes was finally introduced on 28 November 2016. More notes were... Read More About Bond Notes

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