Business / Economy
RBZ to pay $5 for Zimdollar accounts
11 Feb 2015 at 17:00hrs | Views
The Reserve Bank of Zimbabwe will pay out $5 for every Zimbabwe Dollar account as compensation for account holders that lost their money in 2008 with the introduction of the multi-currency regime.
Demonetisation refers to the act of withdrawing a currency from further use and stripping its status as legal tender. That is necessary when a currency has been exhausted by inflation or the nation has changed currency.
Finance Minister Patrick Chinamasa in his 2014 National Budget announced that $20 million would be set aside for the demonetisation of the Zimdollar accounts but this has remained outstanding to date.
In his second Monetary Policy statement, RBZ governor Dr John Mangudya said all genuine or normal bank accounts, other than loan accounts as at 31 December 2008, would be paid an equal flat amount of US$5 per account by June 30, 2015.
"The then prevailing United Nations (UN) exchange rate would be used to convert Z$ balances that were as a result of arbitrage opportunities "burning" and for Z$ cash to be received from the walk-in banking public," he said.
He said the central bank will soon publicise the modus operandi of the demonetisation process.
"The significance of this policy measure is to bring to finality to this long outstanding Government obligation to the banking public and to formally pronounce the demise of the local currency," he added.
Dr Mangudya said the demonitisation of the Zimdollar accounts is critical to buttress Government's commitment to the multiple currency system.
He said government is committed to preserve the multi-currency system until it attains acceptable and sustainable levels of minimum foreign exchange reserves equivalent to one (1) year of import cover, Government budget, interest rates, level of domestic business confidence (business sentiment), inflation rate, confidence in the financial sector and ability of wages to keep up with prices among others.
"The reality of the national economy is that all the above economic fundamentals or indicators are weak to even contemplate the return of the local currency," he said.
Demonetisation refers to the act of withdrawing a currency from further use and stripping its status as legal tender. That is necessary when a currency has been exhausted by inflation or the nation has changed currency.
Finance Minister Patrick Chinamasa in his 2014 National Budget announced that $20 million would be set aside for the demonetisation of the Zimdollar accounts but this has remained outstanding to date.
In his second Monetary Policy statement, RBZ governor Dr John Mangudya said all genuine or normal bank accounts, other than loan accounts as at 31 December 2008, would be paid an equal flat amount of US$5 per account by June 30, 2015.
"The then prevailing United Nations (UN) exchange rate would be used to convert Z$ balances that were as a result of arbitrage opportunities "burning" and for Z$ cash to be received from the walk-in banking public," he said.
He said the central bank will soon publicise the modus operandi of the demonetisation process.
"The significance of this policy measure is to bring to finality to this long outstanding Government obligation to the banking public and to formally pronounce the demise of the local currency," he added.
Dr Mangudya said the demonitisation of the Zimdollar accounts is critical to buttress Government's commitment to the multiple currency system.
He said government is committed to preserve the multi-currency system until it attains acceptable and sustainable levels of minimum foreign exchange reserves equivalent to one (1) year of import cover, Government budget, interest rates, level of domestic business confidence (business sentiment), inflation rate, confidence in the financial sector and ability of wages to keep up with prices among others.
"The reality of the national economy is that all the above economic fundamentals or indicators are weak to even contemplate the return of the local currency," he said.
Source - BH24
