Zim to import coins to ease shortages

via Zim to import coins to ease shortages 25 August 2014

THE Reserve Bank of Zimbabwe (RBZ) said Monday it would import special coins with similar value to those currently circulating in the economy to ease a shortage of change in the economy.

Zimbabwe has been using multiple currencies since 2009 following the demise of its currency due to hyperinflation.

Ditching the local dollar ended hyperinflation and helped stabilise the country’s economy, and facilitated marginal recovery under the coalition government.

But Finance Minister Patrick Chinamasa recently admitted that the multi-currency regime was also to blame for the current economic slide because, among other things, “it pitched our cost structure too high and unsustainable”.

In his policy statement, RBZ governor John Mangudya, said the shortage of change has been cited as one of the reasons for the high domestic prices which have forced Zimbabweans to resort to imports.

“The most plausible reason given by the Retail Association of Zimbabwe, businesses and individuals across the nation for the discrepancy of prices in Zimbabwe and the rest of the world is lack of change within the economy to the extent that sweets and tokens/vouchers are issued as change to the general public,” said Mangudya.

“Barter trade is also in use especially in the rural areas. In order to ameliorate this problem of change and it’s unintended consequences on the price levels in the economy, the Reserve Bank shall be importing special coins of 1c, 5c, 10c, 20c, and 50c whose values would be at par with the US cents.

“Rand coins of 10c, 20c, 50c, R1, R2 and R5 are also being imported to buttress the multiple currency system which is dominated by US$s and Rands.

“These coins would be distributed to business through normal banking channels from the Reserve Bank. The Bank through its Bank Use Promotion Unit shall monitor that the coins are utilised as change to bring decency in the economy.”

The RBZ chief did not however, state when and from where the coins would be imported.

Mangudya also noted the severely constrained macro-economic environment prevailing in the country characterised by a serious liquidity crunch, and called for prudent use of the little financial resources available and improved economic production to turn around fortunes of the economy.

The government had projected the economy to grow by 6 percent this year but it has since cut the growth forecast to 3.1 percent due to subdued economic activity.

Lack of long-term capital and foreign direct investment partly due to the country’s indigenisation policy requiring foreigners to transfer majority shareholding to blacks, has been blamed for the low foreign financial support to help revive the faltering economy.

COMMENTS

WORDPRESS: 20
  • comment-avatar
    Rwendo 7 years ago

    I guess if you are a central bank, and you have little to no control over money supply, it must be like putting a marijuana smoker in a field of weed and then tying his hands behind his back.

    Zvatanga, issuing money, small scale, entry level, by the back door. Who has been contracted to supply these special coins? Their total supply will be valued against what factor and controlled how? Have the opinions of bankers and retailers been sought and if so what was the consensus? etc. I hope that most of us will refuse to accept the “bearer coins” wherever possible.

  • comment-avatar
    nkosilathi linda 7 years ago

    my country,my zimbabwe

  • comment-avatar
    John Thomas 7 years ago

    No ZANU coins wanted here

  • comment-avatar
    mutakura 7 years ago

    Why not import genuine us$ coins? Some people think that zimbabweans are gullible fools. They are planning to bring the discredited z$ through the back door and they think we are too stupid to see it. Why not simply swallow your pride and approach the U S for help in this area? Misplaced pride!

  • comment-avatar

    Special coins???

    Special coins???

    If it walks like a duck,smells like a duck and quacks like a duck it most likely IS a duck.

    fishy!!

  • comment-avatar
    Tjingababili 7 years ago

    IMORT OR INTRODUCE! ZANUPF BE SERIOUS!

  • comment-avatar
    macemike 7 years ago

    Bring back the $ZIM , we don’t want the west’s money!!

    • comment-avatar
      Parangeta 7 years ago

      I pray they do bring back the $ZIM
      , that will be the END
      of ZPF and we can get on with business!

  • comment-avatar

    Senseless revengeful policies ripped the heart out of the economy. The present regime will never address this problem because they would be accountable and that does not work for them. Therefore, this idea is merely fanciful with no real backing to it.
    Our neighbours are growing their economies on the back of Zim’s self destruction. South African businesses have an entire country (or province) added to their books that did not exist on the same scale prior to the death of the agricultural sector. Just look in the shops – even the fruit comes from SA. No wonder SA likes the status quo, it’s great for their economy.

  • comment-avatar
    darlington madya 7 years ago

    zimbabwe is a cash till of SOUTH AFRICA.Simple

  • comment-avatar
    Saddened 7 years ago

    @ AGOG you are absolutely right but then we don’t have leaders with any vision for the country.

  • comment-avatar
    Straight Shooter 7 years ago

    How do you import coins from countries whose currencies you are using illegally?

    Zimbabwe as it is is officially not a US Dollarised or SA Randised economy – how will this happen, please enlighten me?

  • comment-avatar
    bruce koffe 7 years ago

    The irregularities on currency and all the messy started with you ZANU PF when you afforded the war vets money which was unbudgeted for and went on to print the money. The other caused were when Hunzvi valuated some war veterans and grant them 99% disability, medical professions have it on record that disability of even 30% makes a person so nonfunctional, meaning 100% was false and un medical. You allowed it made money so cheap that prices of basic commodities shoot through the roof. Money can only have value when its scarce. The agricultural mechanization, bearer cheques of Gono made the whole monetary system open to abuse by politicians including Mugabe, Chinamasa and the whole group. Surprisingly the abuser of the system are still there enjoying and no one is saying anything. The whole issue led to people in Zimbabwe not have clear mind in terms of money value. The USD and the rand in their home countries have value like never seen, yet in Zimbabwe these currency are still treated like the useless Mugabe $

  • comment-avatar
    Charles Chamunorwa 7 years ago

    Party cadres will be given tenders to supply the coins and only vana vevhu will be allowed to do so-RG

  • comment-avatar
    Parangeta 7 years ago

    The coins are made in China, circulated by Nikuv
    software and like the Electoral Voters Roll, will
    be ‘lost’, as the machines are now broken!

  • comment-avatar
    ttaps3 7 years ago

    Cheap and stupid advice to the Governor– DO NOT IMPORT COINS rather asses how many 25c , 50c and 5c pieces are rotting in Zimbabwe– old Zimbabwe money. The reserve bank should have tons of them, the people have tons of them, the banks have tons of them. Regularize these and bring them back into circulationas equivalent to their US counterparts. Voila you have change without spending a penny. DO NOT MINT NEW COINS– JUST RECALL THE OLD ONES. You could start by recalling say the 10c and the 50c pieces only

  • comment-avatar
    dscot 7 years ago

    Less than a year Zanu tried to get USD coins from America but wanted US to pay for the transport costs. The US quite rightly said, in diplomat terms, get stuffed. Whichever Company prints the coins I’ll bet there are ZANU guys on the directorships – or at least getting a 20% cut. History repeats itself.

  • comment-avatar

    this new coin story will be the next ridiculous joke the RBOZ imposes on the long suffering people of Zimbabwe