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.
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.