Zimbabwe to Force Banks to Buy Debt After Auction Flopped

Zimbabwe plans to force banks operating in the country to buy its Treasury bills after attempts to sell the first central bank securities since 2008 failed, the governor of the bank said.

The Reserve Bank of Zimbabwe on Oct. 4 offered its first Treasury bills since the country abandoned its currency and adopted the dollar in a bid to curb inflation estimated by the International Monetary Fund at 500 billion percent. That offer of 91-day securities failed with all bids rejected by the central bank. The bank rejected all bids in two subsequent sales including an offering of $30 million on Nov. 4. An Oct. 26 offering was partially successful.