The Reserve Bank of Zimbabwe (RBZ) says will add $300 million worth of bond notes from Afreximbank under the Standby Liquidity Support Scheme and ruled out the introduction of higher denominations of bond notes in future.
RBZ Governor, Dr John Mangudya said the bond notes will be introduced on a drip-feed basis in order to boost production and inculcate discipline within the local economy.
Presenting the Mid-Term Monetary Policy Statement in Harare today, Dr Mangudya said the central bank has come up with a cocktail of measures under the theme: ‘Produce and Create Value.’
Some of the measures include the nostro-stabilisation facility funded to the tune of US$600 million from Afreximbank, while individuals are now allowed to leave the country with a maximum of $2000 from the previous $1000.
Dr Mangudya said a savings bond will also come on board as a way of promoting a saving culture with a minimum of $100 and a 7 percent annual interest rate, while people in the diaspora will also benefit a 10 percent incentive if their money comes through the digital system.
Some of the major highlights of the Mid-Term Monetary Policy Statement are a projection of 5 percent economic growth by next year and an inflation rate between 2 and 3 percent.
The central bank said $1 billion cash is circulating within the economy though not efficiently.
Since May last year, the country has generated $4.9 billion worth of exports with $175 million worth of bond notes in circulation.