Reserve Bank introduces long-awaited Bond Notes

The Reserve Bank of Zimbabwe (RBZ) is finally introducing the much-awaited bond notes, the new surrogate currency of Zimbabwe, into the market. This will happen through normal banking channels in small denominations of US$ 2 and US$ 5 to fund export incentives of up to 5%, which will be paid to exporters of goods and services and diaspora remittances. In its statement, the RBZ said the initial release of bond notes shall be in an amount of ZIM$ 10m in denominations of ZIM$ 2, and another ZIM$ 2m in US$ 1 bond coins. The bond notes, which are anchored to the Afrexim Bank’s ZIM$ 200m facility, 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.“ The Reserve Bank said it had 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 country first talked about introducing bond notes six months ago but has been delaying and postponing the introduction ever since.

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