Govt warned over higher bond notes denominations

GOVERNMENT has been warned against the introduction of higher denominations of its surrogate currency, known as bond notes, with bankers arguing it might give the impression authorities want to bring back the Zimbabwe dollar.

BY VENERANDA LANGA

 David Chapfika
David Chapfika

Bankers’ Association of Zimbabwe president Charity Jinya yesterday appeared before the David Chapfika-led Parliamentary Portfolio Committee on Finance, where she also proposed further reduction of withdrawal limits from $1 000 for individuals to $200 per day and for corporates $10 000 to $2 000 per day.

“The reasons why the Reserve Bank of Zimbabwe (RBZ) issued $2 and $5 bond notes and coins was to give confidence that we are not introducing a currency.

“When you start talking around $10 and $20 bond notes, it might open up to wider debate that we are trying to introduce our own currency via the back door,” she said.

Jinya said banks were struggling to find cash to supply the market, adding finance institutions were aware productive time was being spent in queues.

“I am sure every bank would like weekly limits, but for technical reasons it is taking time and for other banks it’s liquidity reasons,” she said.

On delays of real-time gross settlement (RTGS) and transactions through Swift, Jinya said the radical increase in the use of e-transactions for banking was overwhelming banks.

Confederation of Zimbabwe Industries economist Jimmy Pilvos urged the government to adopt the South African rand.

“We would prefer the rand as the currency of reference. The currency to which companies refer their prices must be the rand and the US dollar must be for savings,” Pilvos said, adding government should also re-introduce the Tripartite Negotiating Forum.

Pilvos said authorities also needed to provide incentives for the public to use formal banking systems.

“There is a large quantity of US dollars in the informal market and as business we need to attract those dollars into the formal system because that money can be used to finance nostro accounts. If anyone has US dollars which can go into the formal system, we provide them with an incentive which is a discount,” he said.

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19 Comments

  1. Banking should be made simple and enjoyable by the removal of punitive banking charges, the unnecessary and illogical need to provide proof of residence when everyone is required to provide contact details which include physical and contact addresses and phone or cell numbers which can all be used to track down an individual when that need arises;money put in a bank account should be credited with interest after a certain time even if it is a current account facility in which the money is kept; bank accounts should be safe havens for our money, the place where money is securely kept and protected, not avenues by which financial institutions can loot depositors’ funds so they go down to zero within a couple of months.

  2. rand is the only way to go.

    1. Educate me why the Rand is the only way to go? The Rand is as volatile as any other currency from the emerging currency and you honestly want to import inflation into Zimbabwe. The Zimbabwean problem is not a currency problem but a structural one. By adopting the Rand does it mean the cash suddenly becomes available?

      1. emerging markets

  3. Oracle -International banking practice adopts what is known as KYC Know your customer to counter acts such as terrorism, money laundering, blood diamonds, fraud, dirty money etc. Unotyei kuzikanwa paunogara nemari yako?? 🙂 🙂 on interest being paid on deposits yes thats correct we need deposits to earn something.

  4. mgobhozi wezintabeni

    Reckless and contradictory statements from the country’s national executive causes a lot of panic in the public and as such, people are now very cautious and would not like the repetition of 2008 situation which saw people losing their savings.People now don’t have faith or confidence in the formal financial sector.Even investors are quite timid to invest in this country due to unfriendly investor policies.

  5. the punitive bank charges should be looked into also lets adopt the rand than the bond notes pple don’t trust them .every1 is rushing to withdraw bond notes so that they can swap them with usd$

  6. Please can someone explain to me about the maximum and minimum bank withdrawal limits. When i go to my bank trying to withdraw some money i am told that i can only withdraw $100 per day period.The above article is misleading me.

  7. You’re all missing the point…… it’s our politics which needs sorting out. And I implore cde RG to sit down with everyone on an honest and rational platform. Remove national distrust and corruption & everything else naturally falls into place. Prescribing solutions and a ‘Command economy” will never work.

  8. what du mean everyone, I am nt

  9. Janana wa Bikaz

    There is what is called the Rand Monetary Union in case the CZI economist Pilvos does not know.At the moment it is comprised of Swaziland,Lesotho,South Africa and Namibia.For a country to be a member of this group so that they can use rand in their country ,first of all you must have your own currency.Thats the first step a country should take in order to be allowed into this group.So for us Zimbabweans,as long as we don’t have our own currency there is no way we can use the SA rand because all we have here is a surrogate currency called bond notes and which cannot be traded with other countries.

    1. That is the truth you are now talking. If these old minded guys bring in the rand before the perfect and original ZIM DOLLAR it will go down the drain just like the US DOLLAR did.

  10. Michael Makuchete

    The quantum of the printed money is more dangerous than the denomination.

  11. Zimababwe! We cry our beloved country, the only one to be blessed to use US$ in this region. See now what the jackals have done to our good country. Who ever is causing our country not to prosper,
    the GOLIATHs of our country should break and scatter. IN JESUS CHRIST name we pray

  12. all you are saying isn’t the solution. The solution is political. Bob should retire. Simple

  13. True @Mafirakureva we can talk all these other issues or solutions but the truth is our “Politics”

    fullstop , the old man must go and rest and then all these things tha we are talking about will

    follow.

  14. its Jimmy Psillos not Jimmy Pilvos

    1. Zengeza Bhurumango

      Whatever.

  15. Can some one please correct me on this statement quoted from the above article
    “she also proposed further reduction of withdrawal limits from $1 000 for individuals to $200 per day and for corporates $10 000 to $2 000 per day.”
    Which banks are still allowing these withdrawal limits of $1000 per day?

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