Business / Economy
50c bond coins expected by end of March
05 Mar 2015 at 16:01hrs | Views
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya has revealed that the country will receive $5 million worth of 50c coins by end of this month to complete the cycle of other denominations already circulating.
The bond coins are part of the $50 million facility that RBZ arranged for the purposes of providing the coins with intrinsic value.
Mangudya says the introduction of bond coins represent a paradigm shift which is essential for the development of the country as people should get more returns from a dollar instead of calling for salary increments.
He hopes that the coins will necessitate correct pricing for goods and services and will also go a long way in mitigating the country's lopsided pricing structure.
Mangudya attributed such prices to a lack of change in the country which restricted people to rounding prices upwards. He said there was no tier system in prices and everything was pegged at 50c and the next price was automatically a dollar.
Bond coins were introduced in December 2014 with the RBZ saying they would alleviate change shortages in the country which is predominantly using the US dollar as its base currency.
There have, however, been problems of change denominations as it is expensive to import coins since the country does not mint US currency.
Although the central bank introduced bond coins to counter problems arising from change unavailability, there has been scepticism of its intentions and reported resistance from both informal and formal traders.
The bond coins are part of the $50 million facility that RBZ arranged for the purposes of providing the coins with intrinsic value.
Mangudya says the introduction of bond coins represent a paradigm shift which is essential for the development of the country as people should get more returns from a dollar instead of calling for salary increments.
He hopes that the coins will necessitate correct pricing for goods and services and will also go a long way in mitigating the country's lopsided pricing structure.
Bond coins were introduced in December 2014 with the RBZ saying they would alleviate change shortages in the country which is predominantly using the US dollar as its base currency.
There have, however, been problems of change denominations as it is expensive to import coins since the country does not mint US currency.
Although the central bank introduced bond coins to counter problems arising from change unavailability, there has been scepticism of its intentions and reported resistance from both informal and formal traders.
Source - Byo24News
