RBZ To Introduce a New Currency in Two Weeks

RBZ Committee To Launch A New Committee To Review the Interbank Market
Image Credit: My Zimbabwe News

Central bank Governor Dr John Mangudya has revealed plans to introduce a new currency within the next two weeks during a press statement on the deliberations of the Monetary Policy Committee (MPC), which held meetings this week.

The new currency to be introduced after the MPC meeting will circulate alongside the Bond Note at a 1:1 exchange rate.

Such a currency consists of $2 coin and $5 according to the Governor.

“We have got Bond coins in circulation, Bond notes in circulation of $2 note and $5 note. We are going to have Bond coins of $2 in circulation and we are going to have $2 of currency money in circulation and $5 note of currency money in circulation,” explained Mangudya.

The decision to introduce a new currency comes after the MPC that Zimbabwe is facing cash challenge.

“The Committee noted that the level of physical cash in the economy is inadequate to meet transactional demand, considering that the current proportion of cash to broad money supply of 4% is low compared to regional and international levels of 10-15%,” Mangudya said.

“This low ratio has resulted in an undesirable cash premium which the Committee would like to see eliminated.”

“The Committee also noted the need to review upwards the cash withdrawal limits to ease the burden on the transacting public. This additional cash injection will be carried out through the non-inflationary exchange of RTGS money for physical cash,” Mangudya went on.

Economist Eddy Cross had in the past tipped that a new currency will be introduced this year, inciting the Information Ministry to respond by saying the expert is not a Government spokesperson.

Zimbabwe abandoned its currency in 2009 after hyperinflation eroded the Bearer Cheque value.

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