The RBZ Governor, Dr John Mangudya is said to have confirmed that notes backing Zimbabwe’s new currency will go into circulation in a fortnight earlier today.
The new currency will not be called bond. It’ll just be called dollars and will be 1:1 with the bond notes. We are going to increase cash supply over the next six months and coupled with this, we are also reviewing withdrawal limits up. We already have bond notes and coins in circulation, but we will now have bond coins of two dollars of currency in circulation.Dr Mangudya
In keeping with the central bank’s confusing messaging the Governor said the new currency will not be called bond notes before going on to say they are introducing bond coins with a two-dollar denomination.
Other sites are claiming that the denominations to be introduced in a fortnight will include a new $5 note as well – different to the one already in circulation. What’s key to note is that the new notes will be equal to existing bond notes and coins and interchangeable.
The introduction of a new currency is in line with the RBZ’s desire to make cash more available and remove the premium on cash which has seen people selling cash. To assist with this withdrawal limits will be raised:
The Committee also noted the need to review upwards the cash withdrawal limits to ease the burden on the transacting public. This additional cash injection will be carried out through the non-inflationary exchange of RTGS money for physical cash.RBZ PRESS STATEMENT ON THE DELIBERATIONS OF THE MONETARY POLICY COMMITTEE