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RBZ demonetisation process snubbed
16 Jun 2015 at 06:30hrs | Views
Most Zimbabweans on Monday snubbed the Reserve Bank of Zimbabwe's demonetisation process as a handful of people went to various banks to exchange their worthless local currency.
Some clients were turned away from institutions that started the programme as they had brought the wrong notes.
The exercise came as a result of the Government's move to remove the legal status of the local currency.
Government adopted a multi-currency system in February 2009, which was a response to hyperinflation reaching a high of 213 percent as at July 2008.
The country now uses a multi-currency system. Under the demonetisation process, bank account holders with balances of up to Z$175 quadrillion would be paid a flat $5.
Account holders with balances above Z$175 quadrillion would be paid the equivalent value after applying the UN exchange rate of $1 per Z$35 quadrillion or $1:Z$35 000 (revalued).
For walk-in customers, banks would exchange the Zimdollar at an exchange rate of Z$250 trillion per $1 for 2008 note series and for Z$250:$1 for 2009 notes.
In Bulawayo and Harare, financial institutions such as CBZ, CABS, Stanbic and FBC witnessed few people surrendering the old notes in exchange for the US dollars using prescribed RBZ rates.
At POSB, Ecobank and ZB Bank there was no progress as well.
CABS general manager responsible for retail banking, Ken Chitando, said that all modalities from the RBZ were in place and the institution was geared to commence the process.
Some clients were turned away from institutions that started the programme as they had brought the wrong notes.
The exercise came as a result of the Government's move to remove the legal status of the local currency.
Government adopted a multi-currency system in February 2009, which was a response to hyperinflation reaching a high of 213 percent as at July 2008.
The country now uses a multi-currency system. Under the demonetisation process, bank account holders with balances of up to Z$175 quadrillion would be paid a flat $5.
Account holders with balances above Z$175 quadrillion would be paid the equivalent value after applying the UN exchange rate of $1 per Z$35 quadrillion or $1:Z$35 000 (revalued).
For walk-in customers, banks would exchange the Zimdollar at an exchange rate of Z$250 trillion per $1 for 2008 note series and for Z$250:$1 for 2009 notes.
In Bulawayo and Harare, financial institutions such as CBZ, CABS, Stanbic and FBC witnessed few people surrendering the old notes in exchange for the US dollars using prescribed RBZ rates.
At POSB, Ecobank and ZB Bank there was no progress as well.
CABS general manager responsible for retail banking, Ken Chitando, said that all modalities from the RBZ were in place and the institution was geared to commence the process.
Source - Byo24News
