News / National
Money changers reject bond notes
08 Apr 2024 at 05:49hrs | Views
Vendors in Harare have ceased accepting bond notes following the introduction of the new currency, the Zimbabwe Gold (ZiG) dollar, despite Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanu's announcement that the old notes would cease to be legal tender at the end of April.
Mushayavanhu launched Zimbabwe's new gold-backed currency on Friday in response to the significant devaluation of the bond note, which now trades at ZW$25,000 to US$1 on the black market.
"I'm unsure if bond notes still hold any value. What if I accept them at my stall only to find out later that they're worthless?" remarked Jane Makura, a vendor in the Dzivarasekwa high-density suburb. "This feels like another mistake. They should simply allow us to transact in US dollars and refrain from constantly changing currencies and removing zeros."
Many tuckshops in Dzivarasekwa, Warren Park, and Highfields have followed suit and are no longer accepting bond notes.
The new ZiG currency, characterized by NewzWire as "Mushayavanhu's strategic approach to currency reform in Zimbabwe," has been introduced at an exchange rate of US$1 to ZiG$13.
Tatenda Dube expressed confusion regarding the situation, leading him to decide against accepting bond notes. "I'm completely baffled. I need to discuss with my associates to understand how they propose we proceed. It would have been beneficial if they had provided us with clear information rather than springing this on us unexpectedly."
Bond notes were introduced by the government in 2016, initially at par with the US dollar in value. However, market dynamics and the preference for the more stable US dollar led to their devaluation.
Nevertheless, the new currency regime maintains Zimbabwe's multi-currency system, which recognizes US dollars, pounds, and various other foreign currencies as legal tender.
ActionAid expressed concerns about the introduction of the ZiG currency, stating, "The introduction of the ZiG currency risks repeating the mistakes of the past. Instead of addressing the root causes of our economic challenges, it offers a temporary fix that fails to inspire confidence among Zimbabweans."
Despite the reluctance of vendors, most major retail outlets, including supermarkets, continue to accept bond notes.
Mushayavanhu launched Zimbabwe's new gold-backed currency on Friday in response to the significant devaluation of the bond note, which now trades at ZW$25,000 to US$1 on the black market.
"I'm unsure if bond notes still hold any value. What if I accept them at my stall only to find out later that they're worthless?" remarked Jane Makura, a vendor in the Dzivarasekwa high-density suburb. "This feels like another mistake. They should simply allow us to transact in US dollars and refrain from constantly changing currencies and removing zeros."
Many tuckshops in Dzivarasekwa, Warren Park, and Highfields have followed suit and are no longer accepting bond notes.
The new ZiG currency, characterized by NewzWire as "Mushayavanhu's strategic approach to currency reform in Zimbabwe," has been introduced at an exchange rate of US$1 to ZiG$13.
Bond notes were introduced by the government in 2016, initially at par with the US dollar in value. However, market dynamics and the preference for the more stable US dollar led to their devaluation.
Nevertheless, the new currency regime maintains Zimbabwe's multi-currency system, which recognizes US dollars, pounds, and various other foreign currencies as legal tender.
ActionAid expressed concerns about the introduction of the ZiG currency, stating, "The introduction of the ZiG currency risks repeating the mistakes of the past. Instead of addressing the root causes of our economic challenges, it offers a temporary fix that fails to inspire confidence among Zimbabweans."
Despite the reluctance of vendors, most major retail outlets, including supermarkets, continue to accept bond notes.
Source - newzimbabwe
