Mixed reactions as bond notes hit market

The introduction of #bondnotes across the country today has been met with mixed feelings from various quarters, with some excited that the move will ease the cash shortages in the economy, while others were not so sure if the retailers and other service providers will accept them.

The Reserve Bank of Zimbabwe (RBZ) launched the bond notes today, which come in a denominations of US$5 and US$2, while a US$1 coin has been added into the multi-currency system.

Banks from across the country were today issuing both United States dollars and bond notes for most withdrawals.

A survey in Masvingo revealed that those who were withdrawing small amounts of money were being given the bond notes while those who were withdrawing larger amounts were being issued their money in part bond notes and US dollar.

In Gweru, those who have been struggling to access money from the banks and spending long hours in long queues said the introduction of the bond notes is a welcome move as it will ease the cash shortages.

Traders said bond notes will improve their businesses as people were struggling to buy their products due to cash crisis.

Others urged financial institutions to increase their withdrawal limits, saying the introduction of the bond notes will only work if withdrawal limits are revised upwards.

Some vendors outside one of the leading supermarkets in Gweru however told the ZBC News that some retail shops were refusing to accept the new note, but a visit by this news crew in one of the leading supermarkets revealed otherwise as customers were already transacting without any hassles using the new bond notes.

While some commuter omnibus operators and vendors were readily accepting the notes in Bulawayo, some illegal money changers have pegged different change rates for the notes.

After an investigation at the shopping centre opposite the Tredgold area, the ZBC News unearthed different exchange rates by money changers known as Osiphatheleni for the bond notes and the US dollars against the central bank's directive that the bond notes have the same value as the US dollar.

The forex dealers are now pegging the rand at one is to 10 for bond notes while the US dollar is pegged at one is to 13,8 to bond notes.

There were also reports that some supermarkets in Bulawayo were rejecting the notes and some vendors in surrounding areas like Cowdray Park were also being sceptical to accept the legal tender.

An RBZ representative, Mr Khumbulani Shirichena who was on a public awareness campaign in Bulawayo said the central bank does not condone such a practice and warned people against being fleeced of their money as measures are in place to help anyone willing to travel.

Consumer Council of Zimbabwe (CCZ) Executive Director, Ms Rosemary Siyachitema said there has been lack of education to the consumers on the bond notes, adding that what remains now is to address challenges people might face when using them.

Backed by a US$200 million loan facility, the bond notes are expected to ease the current cash shortage as they are anticipated to stimulate the economy by providing a five percent export incentive to business and miners.

Authorities also view the bond notes as a way of putting an end to cash hoarding and the externalisation of foreign currency, mainly the US dollar.