Mangudya speaks on 'special coins'

HARARE - Zimbabwe is set to introduce a new regime of “special coins” indexed at par with the United States coins by December, the Reserve Bank of Zimbabwe clarified yesterday.

The coins, which are being imported, will be introduced as a medium of exchange and are aimed at augmenting currencies in circulation especially in change.

The measure comes as Zimbabwe is battling a liquidity crisis and small change challenges.

Reserve Bank of Zimbabwe governor John Mangudya told the Daily News yesterday that they were expecting to introduce the special coins before the end of December 2014.

“Indeed, they would be convertible just like the notes,” Mangudya said.

He said “it stood to reason that we need the special coins to be the divisibility units of the USD notes, as such, the special coins would need to be at par with the US cents.”

“Divisibility is one of the most important characteristic of money. The rand coins are also being imported to augment the available stocks within the economy,” said the central bank boss said.

He was tight-lipped on the features of the coins, source and name.

“I cannot tell you the source of the coins,” he said.

“I need to protect the integrity of this market. The RBZ will only share the information on cost once we receive the final invoice from the suppliers, whom we expect to meet next month.”

In his monetary policy statement announced on Monday, Mangudya said the “special coins” denominations will range from one cent to 50 cents.

“Rand coins of 10c, 20c, 50c, R1,R2 and R5 are also being imported to buttress the multiple currency system which is dominated by US$ and Rands,” he said.

The central bank chief added the coins would be distributed to business through normal banking channels from the Reserve Bank.

“The Bank through its Bank Use Promotion Unit shall monitor that the coins are utilised as change to bring decency in the economy,” he said.

Economic experts say the assurance by the RBZ governor will assist in instilling investor confidence in the economy as well as strengthening the financial services sector.

Tony Hawkins, a renowned University of Zimbabwe business academic, said the use of local coins was intended to reduce transaction costs and make it easier for retailers and consumers to conduct business.

He said the use of local coins within a single currency area was not uncommon.

“Members of the SA rand area issue local coins despite being pegged to the rand,” Hawkins said, adding that “it has been stated repeatedly by the Finance minister (Patrick Chinamasa) and this week by the governor, that there are no plans to bring back a local currency.”

Zimbabwe ditched its local currency in 2009 after it was rendered worthless by hyperinflation. Government consequently adopted more stable currencies including the US dollar as well as the South African rand and Botswana pula among others.

Last week, the Bankers Association of Zimbabwe (Baz) said it was imperative for government to retain the multi-currency regime to maintain price stability as well as to strengthen the banking sector for overall economic growth.

Comments (40)

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felix - 28 August 2014

NDIKO KUDZOKA KWEZIMDOLLAR

shon corner - 28 August 2014

Special coin imhuka yakaita seiko iyoyi. Apa Zimdollar radzoka riri kuma coin. Tatambura mwari woye.

mambo - 28 August 2014

In other words, the Zim dollar is coming back disguised as 'special coins'. The way I see it, only a privilaged few will have access to these coins and they will in turn put them to good use by exchanging them for proper dollar bills at banks. Watch this space.

Dr Know - 28 August 2014

They will sweep up all the forex swapping them for these special coins and before you no it you are carrying these "burial" cheques of yester year. There will be teams carrying bags of special coins swapping them for USD and Rand and GBP. The forex is then used to externalise buying houses in HongKong, buying plant and machinery for some dairy and chicken farms and pay school fees in foreign lands for some kids in foreign lands and ahh yes to pay for medical bills in Singapore.

Galore 123 - 28 August 2014

I think RBZ are now beating a ddead donkey. The Rand coins are now circulating widely and everyone can atest to the fact that small change problems are now a thing of the past.

Analyst - 28 August 2014

but for real change iri kunetsa here..... i have seen mahwindi ane masaga emacoin....was beggining to bank my money but hey,,....even a fool will see that its the coming bek of zimdollar........mari takudzos psi pe pillow

simba - 28 August 2014

Ukanzwa ma Degree avanawo vanhu vacho wozohwa zvinobuda muma policies acho wobva woshaya kuti zviri kumbofamba sei

Chikwaturo - 28 August 2014

Why not just import enough US coins?

sandura - 29 August 2014

Ye-e-e, zvaonekwa Gushungu maita basa Zimdollar riya radzoka in style. Bull shit. Mavekudaka kuita wipe out all the US$ that we have by this your stupid ploy of using coins to lure us to trade in our US$. Zvino hatikupii. Takutoviga. you ran down the economy which used to be second best in Africa when you got it from Smith who had managed to propel it to success in the face of damning sanctions. You promised to even deliver a better economy than Smith. Manje ndicho chii ichochi? Madhodhi aya. Nxa-a. Mai Mujuru naMnangagwa havasi ivo problem. Problem ndiMugabe, he must go. Simple.

FRONTO - 29 August 2014

At the moment our Eastern friends are appreciating are endeavours and certainly shiploads of Yuan coins are headed home to Zim.

tindo - 29 August 2014

A solution at long last! A simple idea that eluded Gono, Biti and Chinamasa for years.How many millions of dollars were ordinary Zimbabweans swindled out of in shops and supermarkets with sweets, pens and other trivia in place of monetary change? Makorokoto and thank you governor Magudya.

Johno - 29 August 2014

Zim dollar returns .. Hello black market

Harare - 30 August 2014

That is why we do not progress, we have too many people criticising a simple yet progressive solution to big coin problem. There is nothing in the report that suggests the return of the Z$.

soja - 30 August 2014

Those who say it's not the return of Z$ then what currency will these new coins be in? Rands? US dollars?

Joyce Mujuruuu - 30 August 2014

Mataura vanhu vamwari. Those who are clever must get their hands on the special coins and change them to real money Rand or US$ in God we trust. VanaRBZ vapererwa nepfungwa and yet we know that reviving industry through reestablishing the rule of law is the only sustainable long term option. Gono akaunza 'burial' cheques and made his millions US$...nhasi Mangudya auyawo neyake pfungwa yekutenges special coins kuti aitewo mamillions eUS$...watch out Zimbos, open your eyes.

murambiwa - 30 August 2014

this is a stylish way of bringing back zim dollar

no to zim dollar - 30 August 2014

for purposes of transparency and accountability, we would appreciate figures such as the equivalent value of the special coins USD that will go into circulation. we still remember how the bond-papered bearer cheques that were circulated from the RBZ led to baroness manipulation of the fiscus

Brian Ngwenya - 31 August 2014

I hope Govenor you will als be able to push retailers and service providers to peg their prices according to reasonable denominations not this madness of everything costing $1.

Observer - 1 September 2014

Zimbabweans,how special are SPECIAL COINS??? And in which currency will they be denominated with,moreover are those so-called Special coins tradable Regionally as the current scenario with the Rand,Pula,USD. KEEP YOUR HEAD UP.

Mutape Mutape - 2 September 2014

Technical sounding terms like "special coins" and "bearer cheques" are quite controversial what with memory of the world's harshest inflation still fresh on the mind. if these coins are only "special" to Zimbabwe consumers will treat them as a derivative of the Zimdollar because outside our boarders they will not be tradeable. The increase in rand coins has been slowly alleviating the headache of small change before this "brilliant" idea of "special coins' came on board. Tread with caution comrade Governor because the majority is highly sceptical of this idea.

tafamutekwe - 2 September 2014

Technical sounding terms like "special coins" and "bearer cheques" are quite controversial what with memory of the world's harshest inflation still fresh on the mind. if these coins are only "special" to Zimbabwe consumers will treat them as a derivative of the Zimdollar because outside our boarders they will not be tradeable. The increase in rand coins has been slowly alleviating the headache of small change before this "brilliant" idea of "special coins' came on board. Tread with caution comrade Governor because the majority is highly sceptical of this idea.

tafamutekwe - 2 September 2014

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lendaz - 3 September 2014

Not sure why they are worried about change ,as most items at the bottom end cost $1-00.

Heath Charsley - 3 September 2014

Not convinced by "special" coins that are exclusive to Zimbabwe. Are they exchangeable at the reserve banks of SA, USA, UK etc where our notes originate? Better to encourage the innovative mobile banking services which developed in response to this very problem!

Alison - 3 September 2014

short distance transport operators, hokoyo nenhamo. ma special coins muchamawana chaizvo nemi vemisika yemavheji

haya - 3 September 2014

coin ndizvo.todya coin todada risati rasvika kwamutare

mugomugo - 4 September 2014

coin ndizvo.todya coin todada risati rasvika kwamutare

mugomugo - 4 September 2014

Very clever way of stealing the real US dollar from people and reintroducing the dreaded currency. Mr. Mangudya the solution is not in reintroducing the Zimdollar the solution lies is on revitalising industry and exporting goods then the economy can get back on its feet we were cheated by the bearer cheques and it wont happen again they say once beaten twice shy...personally i will never accept the special coins for change never!!!

Ramistram - 4 September 2014

Whats the difference with tokens produced by combi operators some time ago, because they were based on social understanding.

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Proper Economics - 7 September 2014

Zvichingobvawo naTsvangirai aiti " Hee we want CHANGE. We want CHANGE" Ndoo change yatapihwaka nevakuri. Zim dollar is back. When will our government realise we dont trust it? I wouldnt trust those guys for directions to the toilet. They are out to screw us at every turn.

leprechaun - 8 September 2014

Isn't this the same as printing money

Leo Gaviao - 9 October 2014

People be warned. Accept the return of the zimdollar disguised as change at your peril. Since when have you seen the government selflessly doing something for the betterment of the ordinary folk?.

john - 11 November 2014

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