Monday 4 November 2019

NEW $2 BOND COIN NEXT MONDAY


THE new $2 bond coin goes into circulation next Monday. The news was given yesterday in a statement by Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya and follows last week’s announcement of the impending introduction of the coin plus the $2 and $5 notes.

The new coin and notes will circulate alongside the existing bond notes and coins. The new coin is similar to the present $1 bond coin.

“The two-dollar bond coin will have the following features and characteristics: (a) bi-metal with the outer rim being copper-nickel plated and the inner core being aluminium-bronze plated; (b) serrated rim profile with a groove and edge lettering; (c) inscription of the words “Two Dollar Bond Coin” and the numeral and symbol “2$” on the observe side and (d) inscription of the letters “RBZ” and the numeral “2018” on the reverse side.”

Yesterday’s statement was silent on the notes, but Dr Mangudya has indicated that specimens for the new $5 notes would be out soon after the gazetting of the Statutory Instrument by Government which formalises the introduction of the notes and  coins.
  
Citizens have been clamouring for more cash in circulation. Kombis demand cash and vendors and tuckshops normally accept cash.

Some small shops offer lower prices for cash, but the gap between cash and mobile money is less than the premium dealers, sometimes the same shopkeepers, demand for those buying notes and coins.

The black market exchange rate also has the premium built in depending on whether one is buying US dollar notes for cash or digital transfer.

This suggests that as the premium charged on the black market falls, so the gap between cash prices and mobile money prices will narrow to the same degree since the gaps in prices for US dollar notes and for groceries in small shops are artificial and driven purely by the premium. 

Cash barons have been charging a premium of up to 60 percent. Herald

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