Zimbabwe’s Finance Minister, Professor Mthuli Ncube has announced that an additional $500 million in notes and coins will be put into economy in the first six months of 2020.
Ncube said that the initiative is premised at easing the cash crisis that has lingered for years now. Zimbabwe has attempted a number of tricks including the introduction of the surrogate currency, the bond note to address the cash shortage issue but results have been frustrating, so far.
The minister added that the introduction of the additional $500 million will also address the money-laundering issue.
An additional $500 million in notes and coins will be put into the economy in the first six months of 2020. We expect this to ease the demand for physical cash and you won’t be ripped off by money dealers who sell cash.
His remarks come when parallel markets are now fully established and have become defacto sources of official foreign currency exchange rates.
Economists have warned that money-laundering will continue to be a dorminant threat to the government as long as the cash crisis is not addressed.