via Z$ depositors to get US$5 – NewsDay Zimbabwe February 12, 2015
THE Reserve Bank of Zimbabwe (RBZ) will demonetise the Zimbabwe dollar (Z$) balances by the end of the first half of this year with all genuine account holders receiving $5 per account.
In his Monetary Policy Statement yesterday, RBZ governor John Mangudya said $20 million would be used for the demonetisation process.
Demonetisation is the process in which a particular currency or valuable mineral is degraded as a legal tender.
“In line with the policy pronouncement made by the Minister of Finance and Economic Development in both the 2014 Budget Statement and the Mid-Term Budget Statement, the Reserve Bank shall be demonetising the Z$ balances by 30 June 2015. All genuine or normal bank accounts, other than loan accounts, as at 31 December 2008 would be paid an equal flat amount of US$5 per account.
“The then prevailing United Nations exchange rate would be used to convert Z$ balances that were a result of arbitrage opportunities — ‘burning’ — and for Z$ cash to be received from the walk-in banking public,” Mangudya said.
He said the central bank would publicise the modus operandi of the demonetisation process.
Mangudya said the significance of the move was to bring to finality the outstanding obligation by government to the banking public and to formally announce the demise of the local currency.
Many people lost their money when the country adopted the multi-currency regime in 2009.
Mangudya said credit risk remained a challenge as evidenced by the average non-performing loans (NPL) to total loans ratio of 16% as at December 31 2014 compared to 20% as at September 30 2014.
“The decline in the NPL ratio noted over the quarter is largely attributable to the closure of Interfin and Allied banks and general improvement in loan quality in a few banks,” he said.
The government, through its special purpose vehicle Zimbabwe Asset Management Company (ZAMCO), has acquired NPLs amounting to $65 million to date using other funding mechanisms provided in its funding strategy.
The first phase of ZAMCO will focus on NPLs that are secured and are not for insiders to prevent creating a moral hazard in the banking sector.
“As part of the preparatory work, the Reserve Bank in conjunction with ZAMCO carried out a market-wide exercise in December 2014 to ascertain the level of NPLs that meet the eligibility criteria. Banking institutions will, by 31 March 2015, be advised of NPLs in their respective loan portfolios that meet ZAMCO’s eligibility criteria,” Mangudya said.
COMMENTS
$5 per account – regardless of how much was in the account???
Why bother?
Why bother? is exactly what they are after. The amount to be distributed is $20million and that is quite a handsome loot for the big cats!!!
How many account holders have died since 2008, how many have left? How can the value to each account be known without specifying how many potential recipients have been identified. Since there is a fixed $20million to be distributed the fat cats will get most of it without any accountability. Greedy as they are, they want all be money they got from RB forgiven as they line up for the new loot.
This is a joke. ZANU PF has turned Zimbabwe into a banana republic. I give my 9 year old child $5 everyday to spend at school. ZANU has turned Zimbabwe into the world’s biggest joke of century. Ask Magundya or Mugabe what they can do with $5 if they are given it. probably they will not even know, as they are used to Millions. What a shame, cry the beloved country Zimbabwe
$% per account holder…if you qualify!! This is a very interesting administrative procedure. How many accounts were closed…the bank charges etc. Some f***ing dudes covering their asses to avoid class action in future. What of all the PUPS, investments lost etc. Silly stupid idiots financial administrators at RBZ