Zimbabwe: Bond notes cause panic withdrawal from customers

Nov 07, 2016

Customers make panic withdrawal to avoid repeat of hyperinflation

As President Mugabe signed a law legalizing the introduction of bond notes as legal tender, banks in Zimbabwe have continued to experience significant crowds as customers turnout to withdraw their money from the banks. The introduction of bond notes is designed to lessen the cash shortage crisis hitting the nation's economy. However, there has been strong clash of opinions on this development from financial experts, government officials and Zimbabweans. Zimbabweans are reportedly afraid that the introduction of local money will bring the nation back to hyperinflation experienced between 2008-2009 where the currency became very unstable and was finally abandoned. Responding to this development, Zimbabweans have resolved to withdrawing their money and observe developments on the introduction of bond notes. With the promotion of the Statutory Instrument (SI) 133 of 2016 by the Mugabe led government, if the bond notes are introduced, people's savings and pensions could be at risk given historical events (the hyperinflation of 2008-2009).