Zimbabwe to print its own US dollars

Zimbabwe will print its own version of the U.S. dollar, as an ailing economy fuels a severe cash shortage in the southern African nation. John Mangudya, Zimbabwe’s central bank governor, said Thursday the so-called bond notes will be backed by $200 million in support from the Africa Export-Import Bank, according to the Herald, a local government-owned newspaper.

“It is not an overnight process,” Mangudya told the Herald when asked what date the bond notes will be issued. “We are still working on a design which will be sent for printing outside the country. The notes will not be introduced immediately but probably within the next two months.”

The specially designed dollar notes will come in denominations of two, five, 10 and 20. They will also have the same value as their U.S. dollar equivalents. The bond notes are an extension of so-called bond coins of one, five, 10 and 25 cents which the central bank introduced in 2014 and are pegged to the value of the U.S. dollar.

The central bank governor stressed the introduction of the bond notes does not signal the return of the defunct Zimbabwean dollar, which the country ditched in 2009 amid sustained hyperinflation. Residents have since been using the U.S. dollar as well as several other foreign currencies, including the South African rand and the Chinese yuan. To curb the U.S. dollar shortage, Mangudya also set a $1,000 limit on how much cash can be taken out of the country and encouraged residents to use the rand since South Africa is Zimbabwe’s top trading partner, BBC News reported.The rand, however, has suffered from the brunt of a general sell-off in riskier assets amid fears of a global economic slowdown at a time when South Africa’s own economy is also struggling to grow. Ratings agencies have threatened possible downgrades should the South African government show a lack of commitment to cutting its budget deficit, Reuters reported.
The situation has made Zimbabweans reluctant to hold on to rand notes because they are worried the currency won’t maintain its value against the U.S. dollar. As Zimbabwe faces deepening economic woes after drought weakened vital agricultural production and disrupted hydro power generation, cash-strapped residents are lining up outside banks in the capital to get dollars to pay for everything from groceries to school fees.
“Unless the country takes bold reforms, the economic difficulties will continue in [the] medium term,” the International Monetary Fund said in a report Wednesday, after the most recent consultation with Zimbabwean officials. “Given the outlook for the global economy, growth is projected to remain below levels needed to ensure sustainable development and poverty reduction.”

I would also like to print my own US dollars, where do I sign up!

The U.S dollar is not worth the paper its printed on.

I do understand the need for their own dollars equivalent of the USD. I just wish that their economy can recover from the hit it got from 2008. I mean, my country's not perfect but I'm just glad that we only use one currency here. It can be confusing to have to have different currencies in use in your own country. From what I've read, they have the euro, the sterling, the US dollar and the rand in there.

It's such a shame because Zimbabwe has had a great contribution when it comes to agriculture. Those countries who supply food and crops, they're usually the ones who don't have great economic progress. The same goes for a lot of Asian countries, like mine.

I don't trust any state regulated currency. Not even $$. Good thing that $$ is at least fiduciary money, unlike those that are backed by reserves. If the laws are not clear enough,
the Central Bank will print money as crazy in order to pay Inner debt and sink the people's purchasing power so hard that they will need another set of carts to carry their money.