‘Bond coins to face stiff resistance’

ECONOMISTS and informal traders have warned that new bond coins worth $10 million that are set to make their debut tomorrow might face stiff resistance from the public as there is lingering suspicion on the government’s motives.

CHIEF REPORTER

Four new coins have been unveiled by the Reserve Bank of Zimbabwe (RBZ) in denominations of one, five, 10 and 25 cents.

Their value would be on par with United States cents and are only for local use.

Zimbabwe has exclusively used foreign currency for all transactions since early 2009 after the Zimdollar was rendered worthless by a world record-breaking hyper-inflation.

The US dollar and South African rand are the main currencies used, although about five other currencies are permitted.

Government says the introduction of these coins is aimed at solving the problem of change in most shops where customers are forced to accept sweets, matches or ballpoint pens.

However, locals are sceptical of backdoor attempts to re-introduce the Zimbabwe dollar.

Godfrey Kanyenze, an economic analyst, yesterday said while the coins would be convenient for the public, especially on the issue of change, there is deep mistrust about government operations.

“Bond coins are convenient for the public, especially on the issue of change. However, it requires discussion and education so that they can be accepted. People no longer trust this government anymore after what happened in 2009 when their pension funds were just wiped away,” Kanyenze said.

“Therefore, government should have sat down with the users like businesspeople and companies, but that did not happen. It’s because the government does not take people seriously and it does not consult, so people are suspicious.”

He said since the coins were bonded, they could not be used for imports, meaning that most business operators might face difficulties re-stocking.

A new 50 cent coin would be in circulation in March.

The Bankers’ Association of Zimbabwe (BAZ) has welcomed the introduction of the special coins saying they are being “issued purely to alleviate the current shortage of small denomination in the economy”.

BAZ president Sam Malaba said the coins would have no effect on cash withdrawal limits.

“The public is advised that current banking limits as regards cash withdrawals will not be changed as a consequence of the introduction of the bonds. The coins have been issued purely to alleviate the current shortage of small denomination in the economy, which has resulted in recorded inefficiencies and a huge cost to consumer welfare,” Malaba said.

Zimbabwe Chamber of Informal Economy Association Matabeleland region chapter president Edward Manning said the coins would add no value in Bulawayo where coin shortages were minimal.

“We have never been short of coins in Bulawayo as compared to Harare where people used to get tokens. So I don’t understand why they are bringing in these coins at a time when they are not needed. If there is a change problem in Harare, I hope they will absorb all these coins,” Manning said.

Manning said informal traders might struggle to replace their stock.

“As informal traders, we import most of our goods but these coins will only work in Zimbabwe so if I get a huge stock of the coins how will I be able to replace my stock? I was speaking to a shop owner this morning (on Monday) and he declared that he would not accept bond coins and I think that attitude will be adopted by most businesspeople here.”

44 Comments

  1. I, personally, will continue accepting sweets and or ballpoint pens for change instead of the bond coins. I assure do believe that this is the same stance a lot of people/shoppers will adopt. There is therefore a likelihood of supermarkets failing to dispose of these coins from their tills, which will cause them to take the coins back to the banks – call it consumer resistance!!

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  2. They first called them agro.bills later to call them bearer cheques but overally they were Zimdollars. We dont trust this currency as long as Matibili is in power

  3. I personally will continue accepting sweets and/or ballpoint pens for change instead of the bond coins.

  4. Newsday spreading malicious rumours is very unpatriotic on your part. You should gear your articles more towards Nation building and patriotism.

    Bond coins is an awesome solution to a monetary divisibility challenge. Lets celebrate innovation and solutions.

    News Day your article heading should read: Bond Coins a Welcome Relief – Well Done RBZ.

    1. nyora yako article with that heading dont tell others what to write or report kana wasvotwa look for this reporter umurove wanzwa.

      1. mumwe nomumwe is entitled to hs or hr thinking shaa

    2. @ Patriot. But its true. The coins will take time to be accepted. What if someone brings in $1000 worth of coins to my shop. Will I be able to accept them and use them to import stuff. It will take time for people to accept them. The final Zimdollar bearer notes were first rejected by kombi drivers well before any official announcement on by the government. Things work with confidence and it is a fact few people have confidence in our government. There are simpler ways of unlocking value, like land title deeds for the new farmers.But that an arguement for another day.

      1. if u get $1000 worth of coins, u take them to the bank to get notes then import

    3. Hey @ Patriot…hope you have suggested the same to Herald to help build the nation and not promote hate and division.

    4. We are all adults with choices to make everyday and not children. Those who think these coins are welcome so be it and those who do not want them well and good, after all it was not the RBZ who brought in the multi-currencies. It was people power! I am sure all RBZ people will be using these seeing that is what they wanted???

    5. @patriot why don’t u just agree with this article even rself u are going to resist using them so why are u pretending as if u are that patriotic in fact to b patriotic does not mean u bcom a maron

  5. I want to know what the governor is doing with respect to Kingdom Bank?? Vanhu hasikukwanisa kutora mari dzavo at maximum people are being offered USD20 and the media is mum about it and the RBZ seems to be quite as well. Whats going on??

  6. Sweets and gum will do for me, not some useless bearer coin that will disappear after a few days.

  7. Sweets and gum for me, no bearer coins. No sir.

  8. While I appreciate the need for newspapers to carry out research and report on issues like this one, I also think that it will be beneficial if the newspapers to identify initiatives that are good for the country’s development and economic growth and, maybe through their editorial comments, report or comment positively. Newspapers are a powerful tool in influencing opinion and shaping peoples’ behaviors.

    Maybe it was important at first for the RBZ to engage the newspaper editors and business reporters on this initiative so that everyone works towards making the introduction and usage of these coins a success. I am sure every Zimbabwean wants this country to be a success story so we can all start to enjoying our lives, we all want to go to the shops and plan what we want to buy, as opposed to the shop owners deciding what else we should buy, we all need see items like bread, newspapers, soft drinks and other smaller items that are currently priced at rounded figures like $1 being appropriately priced. Was the Daily News or Newsday Publishers who once introduced tokens? Was the idea not to resolve the change issue. While we know that all bad news sell, newspaper houses will be pleasantly surprised to know that their newspaper sales will actually go up with improvements in the economy, as people’s incomes improve. So, we must all be long sighted and never lose the benefit for everyone of a vibrant economy.

    While I submit that politics and the economy are inextricably connected, I think as a nation we must also start moving to a position where we refuse politics to affect the economy, and one way of doing it is to be able to identify initiatives that are economically sound, and embrace and support them, even if such initiatives come from a political party we do not necessarily agree with.

    1. So you think this is a good initiative, supporting consumption and not investment? Maybe it is you who need to research before you write?

  9. No bearer coins for me.

  10. I don’t want bearer tokens. No sir. Mangundya don’t be like Gono.

  11. It will all start with the combies then we the povo will follow suit no to bonded stupid coins

  12. industrialist economist

    guys these bond coins will also assist in the reduction of liquidity crunch. in any case if you have lots of these bond coins you are being ‘forced’ to buy locally and to some extent supporting the ailing local industry and in the end these informal traders would be eradicated the noise yopedzwa,,,,,,,,,,,,,,, lets support our country guys we are not a market economy (which you want it to be in this case) so we got to support the local industry as well.

  13. Bonded coins??? bonded by who???
    by the same old crooks who stole forex from unsuspecting poor citizens under the guise of making them richer in the bank??? bodo, ndangoribata rinoenda kumatollgate nema’spot fine’

  14. Ma rands coins azara ..so where is the problem of change coming from . Go and import coins from South Africa kwete kudakuita musoro nezvapusa ……..RBZ Governor …..go and bring rands or make Zim part of randinization as Namibia..SIMPLE

  15. Ini bodo on the coins. Will accept anything but that. One of my new year resolutions all my transactions will be done electronically so that I will not get those coins.

  16. bond coins ha ya what next!! all our savings went down the drain! bearer notes!!! it can’t buy me a car or a house! i rather eat my dollar by my self & take pens & sweets, or get credits on my slip & use it to get bread & milk!!!! Hahahaha!!!!! why worry we must use eco cash!! everyone must learn how to use eco cash for combi transactions!!! to safe gard the poor workers cash!! i want to be rich not poor again!!!

  17. sweets & pens

  18. Ok guys, as my same says, ndiri dofo, but can someone explain to me why we are bring in $10M worth of ‘fake’ coins, instead of bringing in the real US$ coins from the USA. Ndatenda hangu nehu dofo hwangu

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  20. 10 million USD worth of fake coins right! Someone wanted coins for the lottery machines! 10 million wasted for experiments?

  21. Maxwell Christian

    All these so called alleviation of change arguments are really false. If the present Government was interested with the welfare of the consumer at large, it would have implored the GNU of which it was part to introduce these special coins in 2009 or it would at least have imported RSA coins in 2009. The change problem at the moment is no longer as acute as it used to be in the first three years of GNU or dollarization. This then leaves as the only governmental aim, the backdoor re-introduction of the ZW$ and raiding peoples forex in return for coins that cannot be used externally. Just as Gono raided the corporate & NGO FCAs back then Mangudya is similarly but in a sanitized manner raiding US$10 – US$40 from corporate and non corporate Zimbabweans by introducing these centavos.

  22. This is a re-introduction of local currency. Full stop. Bonded? By whom? By the same RBZ which a few years ago was the regime’s tool for dishonestly exchanging people’s hard currency with useless paper notes. Wake up Zimbabwe and reject this daylight robbery!

  23. Fake coins, no thanks

    Let us use bottlecaps instead of these fake coins. Any shortage of change is the least of our worries when we don’t have money in the first place. We don’t need fake coins, we need jobs, food, healthcare and education for our children.

    Take these fake coins and pay off our IMF and other Global Fund debts. Do something helpful for once in your life. But then again, the people making these decisions are not affected by this because they deal in diamonds and millions. They didn’t even know there was a shortage until they read about it online on their iPhone 6 while they were shopping in Singapore.

  24. Imi, be honest to people. The world has become a Global village so every currency of any country, whether its Coins or Notes should have a definitive value to and should be convertible against other currencies. These coins can not be exchanged for any value, even in neighbouring countries just like the dreaded Zim dollar. It is the zim dollar in coins! Can i buy something worth even 100Rands at Beitbridge with Zim coins?? No I cant saka its not money come on.

  25. can someone explain to me how the introduction of $20 million worth of coins does not in a way inflate the us dollar currency. Can you redeem those coins at anytime and get your us dollar equivalent without problems. I therefore understand the coins are meant to be a promise to pay the us dollar on presentation,by who,the central bank?Are we saying the the value of wealth exchanging hands /money circulating is short by $20m ?

  26. Is the Reserve bank going to remove $20 million worth of US dollars from circulation and replace them with coins .What will it do with the US$20 million.Squander it ? or it will constitute part of a Reserve .Given that the Government is broke,can they be trusted with keeping people’s money that we have exchanged for the so called coins?

  27. Why wont RBZ use that bond to USA for proper USD coins? I feel that bond doesnt have the value it is being reported to hold. We expect kuona ndege dze Airzim cargo dzichibva states ne ma coin eikoko.

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  29. I’ll never give trust to this regem in what ever they say in sweet words. This is just a litmus test to see if people can accept back Zim dollar. To them they say the opposite always. They’re boosting their ailing economy with puting those millions in circulation. Lets seat back and see u’ll see them introducing notes after we short sighted to liken these bonded zim dollar. Crooks will always be crooks.

  30. Shandisa wega mazinhu ako iwe makudya iwe

  31. mukombe wabvaruka

    kana iko kusanyara. bringing back zim dollar in form form of coins? zim dhora is zim dhora whether paper or coin. fuck zim dhora!!!!!!

  32. Kikikikikikikihaha povo yaramba. Why not sit down with the pple and gather their views b4 making these decisions? Down look down upon the povo. NB: THE POVO IS MORE IMPORTANT THAN YOU FILTHY RICH INDIVIDUALS. I CHALLENGE YOU TO C6E FROM YOUR OFFICES AND STRAIGHT INTO THE STREETS AND FIND OUT WHAT THE MAJORITY OF THE GENERAL PUBLIC WANT.

  33. Dont look down upon the povo. I challenge you to come out from your offices and straight into the streets and gather povo’s views b4 making these decisions.

  34. mabondpaper next

    this is just a trick by the Governor to change the zimdollarphobia. the moment you get used to the coins they’ll begin to tell you that the bond notes are ready and they are equivalent to the US$ but cannot buy from other countries. Now this whole idea is just about trying to promote the domestic product…but I don’t understand how they would go about using that bond to restock or import raw material and stuff like that.. come on man. think! think!

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