BOND NOTES OUT . . . Reserve Bank sets cash withdrawal limits

Source: BOND NOTES OUT . . . Reserve Bank sets cash withdrawal limits – Sunday News Nov 27, 2016

Tinomuda Chakanyuka, Sunday News Reporter
THE wait is over! The much talked about bond notes will start circulating on the market tomorrow in denominations of $1 bond coin, $2 and $5 notes, the Reserve Bank of Zimbabwe has said.

In a statement yesterday, the RBZ said the bond notes would be released into the market through normal banking channels.

RBZ said no new accounts would be opened for the bond notes as they would be deposited into existing US dollar accounts.

The notes will come in small denominations of $2 and $5 to fund export incentives of up to five percent which will be paid to exporters of goods and services and Diaspora remittances. RBZ said the initial release of bond notes will be in an amount of $10 million.

According to the specimen of the notes released yesterday, the $2 bond note’s main features are the three balancing rocks and the picture of the Zimbabwe Parliament Building and the Independence torch on the other side. The $5 bond note has the three balancing rocks while the other side has three giraffes. The $1 bond coin looks like other coins already in circulation except that it has a gold circumference.

Some of the other features include the optically variable ink, tactile marks for the visually impaired, latent image and see through perfect register. The bond notes also have the Zimbabwe bird watermark.

The central bank said in line with its thrust to promote a cashless society through the use of plastic money, the withdrawal limit 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,” reads the statement.

The use of bond notes within the multi-currency exchange system which are anchored on the $200 million facility will operate along the same lines as bond coins, pegged 1:1 to the US dollar. RBZ said retailers, fuel companies and other businesses had agreed on the use and acceptability of bond notes as a medium of exchange.

“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 bank said.

Members of the public have been encouraged to report any form of abuse of bond notes. According to the gazetted RBZ Amendment Bill 2016, anyone who may choose to inflict any form of damage on bond notes could face up to seven years in prison.

“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,” said the RBZ.

Bond notes come at a time when the country is facing a serious liquidity crisis owing to a number of situations, among them externalisation of the United States dollar. The notes are expected to ease the cash crunch which has seen some banks limiting daily cash withdrawals to as little as $20.

RBZ earlier this year said $1,8 billion was externalised in 2015, a development that worsened Zimbabwe’s liquidity challenges.

That necessitated stringent measures that included restrictions on the amount of cash that can be taken out of the country at any given time to $1 000 per an individual.

COMMENTS

WORDPRESS: 18
  • comment-avatar

    You’re f*cked! So sorry.

  • comment-avatar
    Joe Cool 5 years ago

    What lunatic would want to engage in the malpractice of hoarding these bond notes? Wishful thinking, Mangudya.

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    chimusoro 5 years ago

    I want to change my bond notes for $US. Will pay at 2:1. Unlimited amount needed. very urgent.

    • comment-avatar
      reader 5 years ago

      You’re too low already at 5:1.

    • comment-avatar

      Unfortunately this is only affecting the locals. All the indians are laundering their money and draining the country. Wake up locals.

  • comment-avatar
    TJINGABABILI 5 years ago

    MY NAME IS BOND, BOND NOTE! 007!

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    Chiwaridza 5 years ago

    The Zimbabwe diaspora remits approximately US$1 billion into Zimbabwe every year. This is equal to US$83 million a month.. are these US dollars, Pound Sterling, Rand etc going to be converted to bond notes ?? This should be interesting ??

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    Doris 5 years ago

    Even more interesting……does Chinamasa and Magudya ever communicate with each other? Read – Chinamasa reverses fast track Bond Notes. Will allow the process take its proper course. Duh! A fool has been made of the Finance Minister!

  • comment-avatar
    Barry 5 years ago

    “Cash” withdrawal limits? Monkey money is not cash.

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    Bond notes are released on the morning of the 28th of November 2016. The RBZ has set a limit of $ 50 withdrawal from the bank. At 7:00 in the morning of the same day an individual, with a bundle of the notes that is grossly in excess the $ 50 withdrawal limit, is at Warren Park terminus in the city exchanging the bond notes at one is to one with the public. How has he managed to acquire such a huge chunk of the new currency? Who is he working for? What tomfoolery is this?

  • comment-avatar

    So if that bond note carries a risk of being jailed for up to 7 years, so why take the risk? The bond note is a death trap then.
    One would rather have to carry low risk US$. to avoid risk of jail!

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    Tsotsi 5 years ago

    Zimbabweans are obedient sheep. Cowards. They will bleat, but they have no choice except to use the bond currency. There will be an increasing stampede for bonds. The economy is that desperate for some sort of means of exchange. And all the doom mongers will appear to have been proved wrong – at first.

    $10 million into circulation is peanuts. As the bond currency is gradually accepted, the Zim govt will not be able to resist the temptation to cheat by printing just a bit more, then a bit more etc. We know where it ends. After it all goes tits up, they will just wait 5 to 10 years, rinse and repeat. They stole my father’s pension, now they will steal your savings.

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    Willard 5 years ago

    We are in a problem. I’m kindly asking the government to resign.

  • comment-avatar
    ZimJim 5 years ago

    10 million in bond notes for a population of 16 million = 62 1/2 “cents” each….

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    jono austin 5 years ago

    The civil servants, police and army will be paid their bonuses on time this year. With bond notes. Except the Generals- they will get USD. Shops will run out of goods very quickly, and inflation is going to accelerate.

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    mukonda 5 years ago

    at least pavawo nezimdollar… aa shandisao iyoyo guys.. zvirikubhowa chaizvo kukutumira mari kubva kuno then iwe woita two weeks uchingoti hee kubank hakuna mari heee hakuna cash hee what what.. iyo magadzirirwa ka.. use that one.. ende muibate zvakanaka hatiskuda kunzwa futi muchiti hee svondo ratopera muchishaya $100 kubank or ecocash..heyo mari

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    tadisa 5 years ago

    haaas pakaipa