Uptake of bond notes encouraging -BAZ
Harare – The Bankers Association of Zimbabwe says it is pleased with the uptake of bond notes by the public from the banks despite initial skeptism.
The Reserve Bank of Zimbabwe (RBZ) introduced the notes on Monday to alleviate cash shortages the country is facing, which have been attributed to falling exports, hoarding and externalization.
BAZ president Charity Jinya in a statement all banks have witnessed an encouraging uptake of Bond Notes since their introduction.
“All banks have witnessed an encouraging uptake of bond notes since their introduction on Monday 28 November 2016.Banks have reiterated that they are committed to fully complying with all regulatory requirements and will continue to work closely with the Central Bank in providing solutions towards the ease of doing business.” She said.
The bond notes are also aimed at encouraging exports, the main source through which Zimbabwe earns foreign currency.
The bond notes, pegged at 1:1 with the United States dollar, are backed by a $200 million Afrexim Bank facility and will operate alongside a basket of foreign currencies which Zimbabwe adopted in.
The bond notes introduced into the market are in small denominations of $2 and $5 amounting to $10 million and set at a maximum withdrawal of $50 per day and $150 per week.
A skeptic public was so concerned that the introduction of bond notes would lead to the total disappearance from the market of the US dollar which has emerged as Zimbabwe’s main trading currency.
The Central Bank has since assured the public that the notes would be scarce and that it will not print anything in excess of the $200 mln backing facility.