RBZ Considering Devaluing Bond Note- Report

A Reserve Bank of Zimbabwe (RBZ) official who spoke to Bloomberg said the central bank  is considering devaluing the bond note as part of a number of reforms to Zimbabwe’s foreign-exchange system.

The RBZ official who spoke to Bloomberg on condition of anonymity said the central bank is likely to unveil the measures in its Monetary Policy Statement to be announced on Wednesday. When contacted by Bloomberg, RBZ Governor John Mangudya was said to be unavailable in his office.

The official said the decision to adjust the value of bond notes follows submissions by the business community, company officials and individuals about how to formalize foreign-exchange trading in Zimbabwe. He said government supports the move because it accepts the official one-for-one peg to the dollar isn’t working. Bond notes currently trade at 3.61 per dollar on the black market, while RTGS$ are valued at about 3.75 per dollar.