Zimbabwe's new 'bond notes' are falling fast

HOW much is an American dollar worth' The glib answer is exactly one buck. But that is far from the case if the dollar in question is one of Zimbabwe's 'bond notes', the world's newest currency that is not officially a currency.Zimbabwe adopted the US dollar as its official currency after the spendthrift regime of President Robert Mugabe printed so many of its own notes that it caused hyperinflation in 2008. The economy briefly stabilised; but old habits die hard. Last year the government again spent far more money than it raised, much of it on imports, causing scarce greenbacks to flow out of the country.By the end of the year there were so few dollars still circulating that banks were limiting withdrawals to $50 a day, crippling the economy. The central bank decided to issue a new currency, called 'bond notes', pegged to the American dollar. Two months on, the new notes, nicknamed 'bollars', are rapidly losing their value. People have discovered that they are not, in fact, convertible into real dollars. So they cannot be used to pay for imports'a real problem in a country that does not make much. Shops accepting...Continue reading
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