A man holds the new $5 bond note which was introduced on the market to help ease the cash shortages in Harare, Zimbabwe, Feb. 4, 2017. The Reserve Bank of Zimbabwe introduced a $5 bond note on Thursday. (Xinhua)

HARARE, Sept. 18 (Xinhua) -- Zimbabwean Finance and Economic Development Minister Mthuli Ncube on Tuesday said that the bond notes introduced in 2016 as a surrogate currency to the U.S. dollar remained legal tender as the government tried to find a last solution.

The bond notes were introduced with a value of 1:1 to the U.S. dollar to plug cash shortages since 2016.

While the bank rate remains static at 1:1, distortions have been created where retailers procure foreign currency on the black market while continuing to sell their commodities at the pegged bond note value.

On his appointment as finance minister, Ncube spoke about the need to replace the bond note as part of economic reforms, saying that bad money was chasing away good money.

Ncube has now confirmed that for the time being, the bond notes remained legal tender.

"People should accept the bond note because as of today we have not changed the currency," he told journalists.

"They (traders) should accept it. That is what I strongly recommend, until we have come up with this package which will then be a lasting solution to the currency issues."

He said the government was working on fiscal reforms to reduce the budget deficit as these were a burden on the monetary side, while simultaneously addressing currency issues.

Ncube said it was impossible to address currency issues alone without taking care of the fiscal side.

"It's a package that we are working on rather than something as narrow as the currency that is being used on the street but as part of a package that is the foundation for a strong currency going forward," he said.