RBZ rules out $10, $20 bond notes

HARARE - The Reserve Bank of Zimbabwe is not rolling out $10 and $20 bond notes currency, central bank governor John Mangudya has said.

This comes after the State media claimed government was expected to inject higher denomination bond notes soon.

The claims were made in a report that came after opposition leader Joice Mujuru’s bid to challenge President Robert Mugabe’s powers to introduce the surrogate currency hit a snag after the Constitutional Court (Con-Court) struck the matter off the roll.

Mangudya told the Daily News on Sunday: “It’s not true that we are working on $10 and $20 bond notes.”

The RBZ last month started circulating a $5 bond note amounting to $15 million, bringing the total amount of bond notes in circulation to $94 million.

This comes after the country introduced a $2 note and $1 coin last November to ease crippling cash shortages.

This also comes as stressed banks have continued to be plagued by long queues in and around their premises, as depositors continue to rush to withdraw the new currency, with many still struggling to access money from automated teller machines (ATMs) .

Zimbabwe launched a “bond notes” currency on November 28 amid fears it could stock hyperinflation and possibly bring down President Robert Mugabe and his government.

The bond notes — ushered in by the central bank to incentivise exporters and relieve a scarcity of dollars — have so far been widely accepted by most businesses and black market traders but are suffering weakening value.

Many have suggested that the central bank inject more capital in the form of bond notes into financial institutions. It was not immediately clear how much capital would be needed to shore up the cash-strapped banks, but the RBZ has indicated it was ready to inject more capital only to the $200 million threshold guaranteed by the Cairo-based Africa Export and Import Bank (Afreximbank) .

Mangudya told the Daily News on Sunday the central bank has to date issued $94 million of bond notes into the market against an aggregate value of the export incentive of $118 million.

Comments (3)

Zimbabwe has become the land of government thieves and banking practices out of control. Myself as an investor I have lost some $2 million in Zimbabwe. You cannot bring money into Zimbabwe, it will be locked up and never get it out. This is the reason now that I am going on a media wave in the U.S. to let people know do not under any circumstances invest in Zimbabwe. And will impress that the U.S. put the heaviest sanction on this government and the Central Bank for literally stealing U.S. dollars and issue black market currency against the greenback. There has to be a end to the Mugabe government and this is the stand I am taking now. After dealing with Zimbabwe for the last 3 years and losing money and the corruption that exist. Zimbabwe needs a wake up call. It is unfortunate that the same government the launched land reform for giving land back to blacks is the same government that is ripping off investors and stealing U.S. currency to the point of issuing what I call a illegal currency against the U.S. dollar. For this reason I am calling on the U.S Treasury and Congress to put the most pressing sanction they can on Zimbabwe. It is time this madness stop and people of Zimbabwe see the Mugabe government has raped the country into the dark ages. If the only way the international community will change these evil people.

piankhi - 6 March 2017

MDC and ZANU PF Unity made a Strategic blunder by allowing circulation of large US$ denominations ($100, $50 and $20)! The Government of National Unity (MDC-ZANU PF) made the biggest blunder by accepting $100 and $50 bills to circulate when the introduced the multi-currency regime. All the money launderers of this world flocked to Zimbabwe and mopped the much needed currency and the rest is history. It is a bit late but I strongly urge the government to remove the $20 bill out of circulation as well. To those with small brains here is some information that will make you appreciate my point. 1. The biggest bill in South Africa is R200 and its equivalent to $20 2. In Botswana the biggest bill is P200 and is equivalent to $15 3. In Zambia the biggest bill is K100 and is equivalent to $10 4. In Kenya the largest bill is KSh1,000 ($10) 5. In Malawi the largest bill is MK2000 equivalent to $3. Back then in the year 2000 (before Zimbabwe's currency started to go haywire, the Z$ largest bill was Z$100 equivalent to about US$5. I can go on analysing the different countries. Suffice to say that the 5 countries quoted and Zimbabwe's last stable currency should give you a clue of where I'm leading you to. Zimbabwe's economy is one millionth of the USA economy and Zimbabwe dares to use the largest denominations of the US$ to buy what? Zimbabwe does not need these large denominations. They promote money laundering and banking under the pillow or bed. I believe it is important for MDC and ZANU to publicly accept and state that it was a strategic blunder to allow the large denominations to circulate in Zimbabwe.

Dingiswayo - 6 March 2017


#bring back our flag - 7 March 2017

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.