Latest: Mangudya Prints New Bond Notes To Pay Tobacco Farmers

FinX reports that the RESERVE Bank of Zimbabwe (RBZ) has injected new bond notes for tobacco growers which are matched by foreign currency earnings.

RBZ says it has injected $12million bond notes mainly for tobacco growers and the amount of bond notes in circulation so far is pegged at $450million

Reserve Bank Governor Dr John Mangudya assured Zimbabweans that, the central bank continues to exercise restraint on the release of cash into the market however bond notes amounting to $12 million had been released in line with demand for the local currency.

Mangudya revealed that since 2016, a total of $450 million bond notes have been released to the market.

Bond coins and bond notes in circulation in the economy account for around 5% of the money supply.

“But following the start of the tobacco marketing season, new notes were injected to enable growers to withdraw cash.”

While Mangudya says that he is exercising restraint on the release of cash into the economy, there is a section which believes that the central bank is not helping the economy by not injecting additional cash.

-Finx