Zimbabwe’s central bank chief, John Mangudya, says he will introduce a new currency in the next two weeks to address biting liquidity shortages in the economy and regain monetary policy control after years of dollarisation.
Mangudya told journalists in the capital on Tuesday that the as-of-yet-unnamed currency will have denominations of coins and notes with a maximum value of five Zimbabwe dollars (US$0.25).
“We are going to be releasing money into circulation. To be precise, within the next two weeks, we will have the new currency,” Mangudya said.
He said the new currency would trade along with the bond notes and the coins and would have the same value as these surrogate currencies.
Mangudya defended the bank’s decision to have a note worth only five Zimbabwe dollars as the highest denomination in a hyperinflationary environment, saying he wanted uniformity with the denominations that are already in the market.
In line with the law, Zimbabwe’s President Emmerson Mnangagwa must agree to the creation of a new monetary unit. After he assents, the minister of finance will then issue a decree, paving the way for the printing of the currency, Mangudya said.
Zimbabwe‘s inflation was last measured at 350 percent after Finance Minister Mthuli Ncube ordered the country’s statistical department to stop publishing annual inflation numbers until February of next year.
Source: Al Jazeera