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Significance

After a month of fuel protests and a violent military crackdown, Mangudya on February 20 effectively acknowledged Zimbabwean bond notes and electronic RTGS bank balances as part of a new currency scheme. The authorities' latest attempt to stabilise the parallel foreign exchange market, the RTGS dollar, will trade on a new interbank foreign exchange market on a ‘willing-buyer, willing seller’ basis.

Impacts

The recent extension of US sanctions will likely delay the prospect of a new IMF funding programme over the short term.

The government will struggle to improve its international reputation despite a heightened public relations drive.

Recent public protests are likely to have delayed the introduction of a brand-new national currency for now.

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