Botswana phases out old coin

The Bank of Botswana (BoB) has announced the demonetisation of the old coin following the introduction of the new family of coin in February.

Botswana's central bank said the use of the old coin will cease with effect from August 28 and advised members of the public to exchange the old coin at the nearest commercial bank before next month's deadline.

Thereafter, "the old coin will be exchanged only at the Bank of Botswana in Gaborone and Francistown for a period of five years until August 28  2019," BoB  head of communications, Andrew Sesinyi said in a notice on Tuesday.

The demonetisation of the old coins is likely to have a limited spill effect to Zimbabwe where a substantial amount of the old coins are in circulation following the adoption of multi currency in 2009.

Though South Africa coins are mainly used in the country, Botswana's old coins hold their own in the country where small change was a problem soon after dollarisation.

Economist Vince Musewe said the demonetisation of the Botswana's coins in inconsequential to Zimbabwe since the portion of old coins is very small.

"The bulk of these coins are not used in banks, but used in public transport as change.

"Public transport will just refuse to take them and there will be thrown away. It really does not make economic sense to go and change them in Botswana," he said.