An Official Statement from the Reserve Bank of Zimbabwe was released early this morning referring to the long speculated and debated matter regarding the launch of the Bond Notes. In the midst of nationwide skepticism the RBZ has gone on the record announcing that the parallel tender will be in circulation as of Monday, 28 November 2016 in the form of $2 and $5 notes. As a means to counter what has been coined as a ‘paralysing money crisis’ it would seem the Bond Notes are far from an immediate solution to the cash dry Zimbabwean Economy.
According to the Press Release withdrawal limits of bond notes have been set at a maximum of $50 per day and a maximum of $150 per week as a controlled measure to counter the abuse of the bond notes.
Regarding acceptance of the notes, RBZ referred to agreements with the Retailers Association of Zimbabwe, fuel companies, representatives of the various business associations and the Consumer Council of Zimbabwe on the use and acceptability of bond notes as a medium of exchange in the country.
For many citizens this announcement may prove to be the dawn of inevitable doom, while numerous business owners are said to welcome the decisiveness shown by the RBZ after elongated uncertainty.
Read the full Press Release below.
PRESS STATEMENT ON THE INTRODUCTION OF BOND NOTES
The Reserve Bank of Zimbabwe is pleased to advise the nation of the
introduction of bond notes with effect from Monday, 28 November
2016. The bond notes will be released into the market through normal
banking channels in small denominations of $2 and $5 to fund export
incentives of up to 5% which will be paid to exporters of goods and
services and diaspora remittances. The initial release of bond notes shall
be in an amount of $10 million in denominations of $2 and $2 million in
$1 bond coins. The features of the bond notes will be released
simultaneously with the bond notes.
The use of bond notes within the multi-currency exchange system which
are anchored to the US$200 million facility will operate along the same
lines as bond coins. They are pegged 1:1 to the US dollar. The banking
public is advised that no new accounts will be opened as the bond notes
would be deposited into existing US dollar accounts.
In line with the Bank’s thrust to promote a less cash society through the
use of plastic money, withdrawal limits of bond notes have been set at a
maximum of $50 per day and a maximum of $150 per week. This
measure is in tandem with the objective of the Bank to release bond
notes into the market on a measured basis which is critical to mitigate
against abuse of bond notes.
The Reserve Bank has engaged and agreed with the Retailers
Association of Zimbabwe, fuel companies, representatives of the various
business associations and the Consumer Council of Zimbabwe on the
use and acceptability of bond notes as a medium of exchange in the
country.
The Reserve Bank would like to request the public to report any form of
malpractice and abuse of bond notes including but not limited to
hoarding, defacing, disfiguring or unlawful use of notes and
manipulation by person or banks or currency dealers or traders in
connection with the use of bond notes.
Such malpractices should be reported to the Reserve Bank of Zimbabwe
on toll free numbers Telone – 08006009 and Econet – 08086770.
Reserve Bank of Zimbabwe
26 November 2016
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