Zimbabwe’s central bank struggles to stem bond note crash

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Zimbabwe bond note

A bond note with a face value of two dollars now buys far less in reality

Zimbabwe’s ‘bond notes’ quasi-currency crashed this week, leaving huge disparities between prices across different payment methods.

“The black market exchange rate, which was stabilising at around 1 to 1.4 before July, shot up to 1 to 2.5 last week,” a senior economist working at the Zimbabwean Treasury, who spoke on condition of anonymity, tells Central Banking. “Instead of floating the exchange rate, the central bank governor last week maintained the parity.”

Bond notes are ostensibly meant



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