$5 compensation for Zim dollar accounts

HARARE - The government has set aside $20 million towards the demonetisation of long dead Zimdollar accounts, with a maximum once-off payment of a paltry $5 per each account holder.

Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said in his monetary policy statement yesterday that the then prevailing United Nations (UN) exchange rate would be used to convert Zimdollar balances held by local banks.

“In line with the policy pronouncement made by the minister of Finance and Economic Development in both the 2014 Budget statement and the mid-term budget statement, the Reserve Bank shall be demonetising the Z$ balances by 30 June 2015.

“All genuine or normal bank accounts, other than loan accounts, as at 31 December 2008 would be paid an equal flat amount of US$5 per account.

“The then prevailing United Nations (UN) exchange rate would be used to convert Z$ balances that were as a result of arbitrage opportunities ‘burning’ and for Z$ cash to be received from the walk-in banking public,” Mangudya said.

He said the move would bring finality to the use of the Zimdollar as the country’s official currency, as well as concerns over balances denoted by it.

“The Reserve Bank shall soon publicise the modus operandi of the demonetisation process.

“The significance of this policy measure is to bring to finality this long outstanding government obligation to the banking public and to formally pronounce the demise of the local currency.

“This is critical to buttress government’s commitment to the multiple currency system which government is committed to preserve up until the following economic fundamentals have reached acceptable and sustainable levels,” he said.

Zimbabwe switched to a multi-currency system in 2009 after hyperinflation rendered the Zim dollar worthless.

According to the RBZ, 80 percent of the transactions in the country are made using the US dollar.

The adoption of multiple currencies helped Zimbabwe stem hyperinflation which officially scaled 231 million percent in 2008.

Comments (12)

IS IT NOT MUCH BETTER for the 20 million dollars to be invested e.g in to a building complex and let the account holders become shareholders. The five dollars per account are going to be absorbed by bank charges.

Matiraburo - 12 February 2015

So how do you explain this to a 96 year old in Binga, Kotwa, Bulilamangwe ect???? Come on educated mates someone is just covering their asses here. Who is financing this formality?

garikayi - 12 February 2015

The thieving MAFIA are at it once more!! CRY THE BELOVED COUTRY

Mukanya - 12 February 2015

This new governor never seizes to amaze. First it was bond coins, now this. He seems to want to be seen as if he is doing something yet he is actually wasting our taxpayers money, embarking on half baked solutions to non existent problems. All the money will be chewed by bank charges, and there is nothing for the common man. He has indeed started on a bad note.

tom toms - 12 February 2015

Let the rule apply to entities like Telone that converted the receivables from poor Zimbaweans at unbearable exchange rates and is constantly threatening to take former clients to courts for the outstanding debts.

john - 13 February 2015

Let that money be for investment. I think this money together with that of the diamond proceeds whose reserve will one day run-out,should be used to fund strategic firms-eg NRZ,CSC,BATA,DUNLOP,DAIRYBOARD,GMB,SUGAR REFINERIES -to mention but just a few-in the form of soft loans-This strategy needs us to be brave as this would mean low revenues to the fiscus for a reasonable while

Edrci - 13 February 2015

this is a foolish move, GMB must be given that money pay farmers who donated their grain to GMB in 2013-14 season pliz , $5 is sick a money for one person and I feel e issue of zim$ its nw water under the bridge, after all the money is going to be absorbed by bank charges.

accuracy - 14 February 2015

Muwone why are you quiet?

Rudi - 15 February 2015

Musona where are you?

Rudi - 15 February 2015

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