RBZ rules out conversion of foreign currency into Bond notes

FOREIGN currencies in bank accounts will not be converted to bond notes when they are finally introduced, Reserve Bank of Zimbabwe Governor Dr John Mangudya has said.

In a telephone interview yesterday, Dr Mangudya said there was no need for bankers to panic as their money would remain in the currencies it was in before the introduction of bond notes.

Dr Mangudya's assurance comes amid reports that some shops were no longer accepting plastic money for fear that their money would be converted to bond notes when they are introduced in due course.

It is understood that some shops and service providers are now accepting cash payments only. But Dr Mangudya implored the media to play their role in educating people about bond notes.

"There is no relationship between plastic money and bond notes. "The two are, instead, alternatives. It is the role of the media to also clarify that there would be no notes accounts and there would be no conversion. Any money in the accounts can be spent through plastic money." Zimbabwe National Chamber of Commerce (ZNCC) chief executive, Mr Christopher Mugaga said there was a lot skepticism about the bond notes.

Dr Mangudya at the weekend said introduction of bond notes early next month was still on course with massive educational national awareness campaigns expected to start on October 31 countrywide.

He said the bank was in the process of importing more US dollars, but warned the people not to abuse the money. The notes, with a value of $75 million, will be introduced in $2 and $5 denominations.