$4 million demonetisation funds claimed

via $4 million demonetisation funds claimed – NewsDay Zimbabwe July 31, 2015

A FIFTH of the $20 million demonetisation fund has been utilised through the banking channels, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has said.


RBZ began the demonetisation process last month to retire the Zimbabwean dollar and buttress the multicurrency regime.
The decommissioning exercise of the local unit will end on September 30.

“A total of $7 million was given to banks and $4 million has been taken by customers. The banks still have almost $3 million,” Mangudya said.

He said he could not quantify the figures given to people in the rural areas adding that walk-in customers had taken $375 000 so far.

“We cannot separate urban from rural as some banks also have rural branches,” he said.

Under the demonetisation process, bank account holders with balances of up to Z$175 quadrillion would be paid a flat $5.

Account holders with balances above Z$175 quadrillion would be paid the equivalent value after applying the UN exchange rate of $1 per Z$35 quadrillion or $1:Z$35 000 (revalued).

Mangudya said demonetisation was not meant to address the ill caused by inflation or hyperinflation.

“It is about decommissioning currency. I do appreciate the loss caused on all citizens by hyperinflation, but unfortunately hyperinflation cannot be compensated throughout the whole world,” he said.

Mangudya said the demonetisation process was to bring finality to the outstanding obligation by government to the banking public and to formally announce the demise of the local currency.

Analysts say the retiring of the local unit would restore confidence that the multicurrency system was here to stay.

Since the use of the multi-currency regime in 2009, the local unit had not been officially removed from the system raising suspicion that it would be retrieved from the grave.

A snap survey by NewsDay revealed that some people have received the $5 in their bank accounts under the exercise.