Following the introduction of new bond notes by Zimbabwe, many traders in Harare are accepting them in exchange for goods where some traders have acknowledged that they are now able to sell their wares more easily.
Zimbabwe’s central bank started circulating $10 million worth of new bond notes last month,in efforts to curb a serious cash crunch, although withdrawals are limited to curb any abuses.
“To my side things are changing because I can get the 2 dollar note the dollar coin and people are coming to buy with the notes. It seems as if people are getting money here and there so I can manage to build up my business so I think in mid-March or April if the bonds are a lot things will be okay,” vegetable vendor, Grave Mlambo said.
Upon announcement of the release of the bond notes many Zimbabweans tried to empty their accounts of hard currency with some linking the move to the secrecy of the Reserve Bank of Zimbabwe around the release as well as its failure to publish security features
“You have a situation where people have not been able to access their money in a long time and most of them are desperate, it’s like a question of grinding people until they are desperate – and people need. This is the festive season people need to buy stuff for the holidays; people need to prepare for the agriculture season so you literally hell force people into a situation where they have no choice but to accept these bond notes,” economic analyst, Alphonse Mbizvo said.
Zimbabwe is $1.6 billion in arrears to the World Bank and African Development Bank.
The huge debt prevents Zimbabwe from securing any extra financing from the two institutions or the International Monetary Fund.