Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has indicated that the central bank will introduce an extra $400 million worth of bond notes into circulation to cover the gap left by the withdrawal of hard currencies.

“As we move towards a cashless society, we still need about $400 million to allow people to access cash, so we are going to print that money to cover that gap left by the removal of the multi-currency system,” Mandudya told a state owned radio from China.

“We will not print up to levels that will cause inflation as feared by some people.”

Mangudya said Zimbabwe’s economy requires around $1.5 billion in cash and currently has between $600-$800 million in bond notes.

“Currently we have about $6-800 million in bond notes and coins. This economy requires about 10% of all deposits in liquidity which comes to about $1-1.5 billion.

“So we will definitely bring in notes and coins in the value of around $400 million,” he said.

He also dismissed claims that foreign currency account holders will not be able to withdraw their money in the currency they deposited.

“Recipients of diaspora remittances and other foreign currency payments will still withdraw in hard currencies or choose to get it in Zimbabwean Dollar at an interbank rate,” he said.

According to a statement from the RBZ non-governmental organisations, embassies and other foreign organisation will not be affected and can continue paying salaries in foreign currency.