HARARE (IDN | GIN) – With exports down and scarce dollars hidden away under pillows, banks in Zimbabwe are running out of legal tender. At the same time, some ATMs have been shuttered, leaving minimum wage workers, normally paid in cash, with IOUs as employers struggle to withdraw notes.
“We’re importing more than we’re exporting and we can’t print money because we use mainly the U.S. dollar,” explained Sam Malaba, CEO of the Agricultural Bank of Zimbabwe.
In May 2016, in a bid to relieve the cash shortage, Reserve Bank of Zimbabwe governor John Mangudya announced the printing of “bond notes” – usable within the country but worthless outside – to begin circulating in October. However, the new currency is widely rejected as “monopoly money” by the population.