Zimbabwe's President Provides Legal Basis For Issuance Of Bond Notes

President Robert Mugabe has issued regulations clearing the way for the issuance of 'bond notes.' The notes are a surrogate currency Zimbabwe's government hopes will ease a biting US dollar bank note shortage. President Mugabe used the Presidential Powers Act to amend the Reserve Bank of Zimbabwe Act to designate bond notes as legal tender. A bond note unit will trade at par with one US dollar, according to the notice. The central bank is now expected to bring the local currency into circulation this week. In May, the central bank announced its plans to circulate bond notes alongside the US dollar and other currencies in Zimbabwe's multi-currency basket, which also includes South Africa's rand, Botswana's pula, China's yuan, the euro, British pound and Japan's yen.
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