Published On: Wed, Nov 30th, 2016

Uptake of bond notes encouraging -BAZ

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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.