RBZ hikes bond notes withdrawal limit

HARARE - The Reserve Bank of Zimbabwe (RBZ) has increased the withdrawal limit for bond notes from $150 weekly to $300 following the injection of an additional $12 million of the surrogate currency into circulation.

The daily withdrawal limit has also been hiked from $50 to $100.

The apex bank’s governor, John Mangudya, said the $12 million — injected into the system during the week-ending December 16 — brings the total amount of bond notes in circulation to $29 million.

The notes are backed by a $200 million Afreximbank facility and are valued at par with the United States dollar.

“A cumulative total of $6,2 million bond notes have been deposited by the banking public at banks as at December 16, 2016.

“Against this background, bond notes shall fortuitously and subserviently go a long way to mitigate cash shortages within the economy,” Mangudya said.

He was, however, quick to point out that cash queues were going to take time to clear.

The notes were primarily introduced to finance an export incentive scheme of up to five percent for exporters and also apply on Diaspora remittances.

“Clearing of cash queues at banks can never be an overnight event. It is a process,” he said.

Mangudya also said all tobacco growers who sold their tobacco this year through the auction floors, including contracted tobacco growers, had now benefited from the five percent export incentive scheme.

“This move is expected to provide impetus to tobacco farmers to continue with both reaping and processing of this year’s tobacco crop...We trust that these measures will go a long way towards making easy for the public to transact during the festive season,” the RBZ chief said.

Mangudya said the central bank was “encouraged” by the circulation within the domestic economy of bond notes, urging financial institutions and other service providers to ensure that point of sale and other electronic payment facilities are spread throughout the country.

Meanwhile, about $9,4 million worth of bond coins is currently in circulation, as the central bank inches towards its $10 million bond coin ceiling.

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.