Zimbabwe’s Central Bank Governor John Mangudya announced a new national currency and its abandonment of Zimbabwe bond notes, a temporary currency, whose value had been equated with that of the US dollar for the past decade, The Wall Street Journal reported.
According to the outlet’s Wednesday report, Mangudya said that electronic bank savings and locally printed bond notes would not be exchanged one-to-one for the US dollar anymore.
At the same time, the Zimbabwean authorities have introduced a new currency that will be redenominated as RGTS (Real Time Gross Settlement) dollars. These new electronic dollars will be traded in the new interbank foreign exchange market against the US dollar and other foreign currencies.
Mangudya, in particular, recognised that this was done due to the fact that the country was running out of US dollars that were trading at a premium of 300-400 percent on the black market, according to the publication.