Zimbabwe abandons bond note peg after continuous devaluation

Zimbabwe on Wednesday abandoned a peg that was supposed to ensure its quasi-currency bond note would trade at parity with the U.S. dollar, Central Bank Governor John Mangudya said.

Zimbabwe began introducing bond notes to alleviate chronic cash shortages in 2016. Over time the bond notes have devalued against the U.S. dollar on the street, despite being officially pegged to the value of the greenback.