RBZ reviews Zimdollar balances

THE Reserve Bank of Zimbabwe (RBZ) is reviewing the Zimbabwe dollar bank balances provided by the financial services sector as it works towards the demonetisation process.

BY VICTORIA MTOMBA

Central bank governor John Mangudya said all the banks had submitted their Zimbabwe dollar bank balances.

He said the RBZ would launch campaigns in June to raise awareness on the demonetisation process.

“We are finalising the review of all bank balances and in June we will have awareness campaigns to pay both cash and bank balances,” Mangudya said.

“We will also pay for the cash that individuals have in their home so that we bring finality to the demonetisation process.”

He said the Zimdollar could not be buried without the demonetisation process. Demonetisation is the act of stripping a currency unit of its status as legal tender.

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The bank has set aside $20 million for the process to be undertaken next month.

Each individual bank account holder will receive $5 as the minimum compensation for the Zimdollars people lost when the country switched to the multi-currency regime in 2009.

The central bank will use the United Nations rate for all accounts.

Mangudya said in his Monetary Policy statement in January that genuine normal bank accounts, other than loan accounts as at December 31 2008 would be paid an equal amount of $5 as a minimum.

He said the UN rate would be used to convert balances that were as a result of arbitrage opportunities “burning” and Z$ cash will be received.

The demonetisation policy will bring finality to the long outstanding government obligation to the banking public and this will formally pronounce the demise of the local currency.

The move was expected to buttress the multiple-currency system.

5 Comments

  1. the zim dollar is never going to come back. history says that all vountries who have dollarised have never gone back to their currentcy

    1. Peter Wamambo

      With the cash yemukangairwa iyi hameno, but those with genuine sweated for cash tiri patight.

  2. What a joke!!! US$20million ONLY for the whole country and its poor bank account holders. Just donate that money to Mugabe’s endless trips!!!!!!!!!!!!!!!!!!!!

  3. When I was a kid, I watched a lady who had come from a foreign trip, having a hard time trying to buy some drinks using American Dollars. The shop keepers would just look at them like they were souvenirs, then hand them back to her. So she had to go home without the snacks. High production, especially of essential commodities/products, gives birth to the necessity for a local currency.

  4. This Magudya thing is a disaster, I don’t know from where he got his PHD from …I pray it’s not from a UZ’s Chancellor again..we all know who. $5.00 per account holder what a joke?? For argument’s sake consider Zim’s population of circa 12mil vendors, assume only 25% had bank accounts (forget corporate clients for the purpose of my calculation) this means 3mil account holders are entitled to the minimum payout of US$5 each. Then ask a grade 2 pupil from Zvimba and you will get to a total of US15mil. So there is only US$5mil left for prorata payment to those who had good bank balances, corporate bank account holders, investments in PUPs, fixed deposits etc, a good chunk to the f%$£ng bank costs and a provision for administering the fund ,and of course some clever dudes in the RBZ who will misappropriate a few bucks…What are we doing ladies and gentlemen??? GOG BLESS ZIMBABWE and its many PHD holders.

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