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Zimbabwe ‘Zombie Currency’ Hits Streets as Bond Notes Arrive

  • Bond notes pegged to the dollar distributed to banks
  • Banks will restrict withdrawals to avoid flooding market
A man shows the new notes introduced by the Reserve Bank of Zimbabwe in Harare, on Nov. 28, 2016.

A man shows the new notes introduced by the Reserve Bank of Zimbabwe in Harare, on Nov. 28, 2016.

Photographer: Tsvangirayi Mukwazhi/AP Photo
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Zimbabwe’s central bank has started adding bond notes -- printed by the government and backed by dollars -- into the financial system, delivering the currency over the weekend to banks in the southern African country.

With no currency of its own, Zimbabwe allows the use of a basket of foreign exchange including the South African rand, the euro and the pound. The bond notes are intended to reduce a shortage of hard currency that has led to delays of several months in salary payments to civil servants, the military and some private company employees.