Zimbabwe Won’t Be ‘Fishing Pond’ for Dollars, Chinamasa Says
- Foreign currency earnings to be used only for vital imports
- Economic growth forecast for 2016 cut due to drought
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Zimbabwe will introduce bond notes and restrict the spending of foreign currency to vital commodities to limit dollars leaving the country and exacerbating the nation’s cash crunch, according to Finance Minister Patrick Chinamasa.
“We believe the introduction of the bond notes will help stop the country from being a fishing pond for the U.S. dollar,” Chinamasa said in an interview Wednesday at the African Development Bank’s annual meetings in Zambia’s capital, Lusaka. “A lot of companies, so-called investors, come to fish out our U.S. dollar resources and that is what is producing the shortage.”