By Lily Kuo*
Zimbabwe is introducing its own version of US dollars to deal with its worsening cash crunch. John Mangudya, governor of the Reserve Bank of Zimbabwe, said the bank will introduce “bond notes” of $2, $5, $10, and $20, which will hold the same value as their US dollar counterparts, according to a statement (pdf) yesterday.
The bond notes, to be introduced over the next two months, will be backed by $200 million provided by the Africa Export Import Bank, the regulator said. Mangudya also said the bank will also convert 40% of dollar receipts from the country’s exports into rand and limit daily withdrawals to $1,000.