Connect with us

Hi, what are you looking for?


Bond Notes Were Never Backed By Afreximbank, says Mushayavanhu

New RBZ Chief 'Dr. John Mushayavanhu' Under Scrutiny Ahead of High-Stakes Monetary Policy Decision

Dr. John Mushayavanhu, the new head of the Reserve Bank of Zimbabwe (RBZ), surprised many on Thursday when he revealed that, despite previous claims, the bond notes and Zimbabwe dollar were not supported by the US dollar bond facility from the African Export-Import Bank (Afreximbank), based in Cairo.

This contradicts what Dr. John Mangudya, the former RBZ governor, had previously stated, asserting that the bond notes were backed by a US$200 million Afreximbank facility.

However, the government stopped using bond notes and coins in 2019 when they reintroduced the Zimbabwe dollar.

Last week, President Emmerson Mnangagwa’s administration replaced the Zimbabwe dollar with a new currency called the Zimbabwe Gold (ZiG).

Speaking at the Confederation of Zimbabwe Industries Monetary Policy Review Breakfast Meeting on Thursday, Dr. Mushayavanhu emphasized that ZiG is the currency of the future because it is backed by foreign currency reserves, gold, and other valuable metals.

Advertisement. Scroll to continue reading.

ALSO READ: Zimbabwe Receives 2,000 Doses of Cutting-Edge PrEP for HIV Prevention

“Previously, the bond note had no backing,” Dr. Mushayavanhu explained. “We never had a policy where our local currency was supported by reserves. Consequently, we did not have enough reserves to support the currency. There were times when the amount of money in circulation exceeded the reserves held by the central bank. This is something we have addressed by introducing the structured currency (ZiG).”

Dr. Mushayavanhu also disclosed that as of April 5, 2024, the RBZ had foreign currency holdings totaling US$100 million in cash and 2,522 kilograms of gold valued at US$185 million to support ZiG.

For comments, Feedback and Opinions do get in touch with our editor on WhatsApp: +27 82 836 5828

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Catch More Updates Below


CBZ Bank has secured an US$80 million loan facility from the African Export-Import Bank (Afreximbank) aimed at bolstering trade financing and capital expenditure for...


The Reserve Bank of Zimbabwe (RBZ) governor, Dr John Mushayavanhu, has announced that the Zimbabwe dollar (ZWL) is still legal tender. Speaking this morning...


Harare | Afreximbank has granted property developer Exodus & Company a US$141 million credit to develop land for residential and commercial developments. The agreement...


Today, President Mnangagwa is anticipated in Ghana, where he will attend the 30th African Export-Import Bank (Afreximbank) meetings among leaders from the continent and...


Copyright © 2023 ZiMetro News