RBZ introduces new bank notes in two week’s time
The Reserve Bank Of Zimbabwe is to start the rollout of new local banknotes with the release of $5 notes over the next two weeks. RBZ Governor Dr John Mangudya, speaking to reporters after the first meeting of the Monetary Policy Committee (MPC) in Harare earlier this week, said the bank will gradually issue the currency which consists of the $2 coins and $5 notes and these will no longer be referred to as a bond currency.
The new $5 notes and $2 coins are set to be in circulation within a fortnight to ease the cash shortages that have resulted in cash barons charging as much as 60 percent and the unlawful two tier-pricing model for digital money and cash payments.
Dr Mangudya assured the public that the notes will not be inflationary as RTGS dollars will be removed from circulation immediately after the cash is issued. The new notes and coins will circulate alongside bond coins and notes at par value. An upward review of daily withdrawals limits is likely to happen, which will be announced later. The new injection of cash into circulation has attracted mixed feelings from the public with some thinking this move will be inflationary while others have expressed great excitement with the hope that cash shortages are eradicated. Explaining why more cash will not fuel inflation, the governor said: “When you are substituting your cash for plastic money, you don’t increase inflation, but what it does, it will help the population . . . to the extent that people are going to use their money without being charged premiums.”