News / National
Clean $100, $50 notes flourishing on black market
04 Nov 2016 at 07:22hrs | Views
A black market for large denominations of the United States dollar is flourishing in Zimbabwe's cities with clean and crisp US$100 notes selling for about US$105 as people seeking to export foreign exchange illegally look for portable notes.
This comes after the Reserve Bank of Zimbabwe (RBZ) announced in February stringent measures including the capping of cash withdrawals without one-day prior notice to US$10 000, restrictions on offshore investment and suspending free funds to tackle illicit money flows and capital flight remittances after nearly US$2 billion evaporated from the capital-starved economy through externalization last year.
The central bank this week said it was sensing a growing trend in third-party transactions through well-orchestrated schemes that ensure cash deposits do not make it into the banking system.
Meanwhile, unscrupulous characters have started printing fake bond notes which they plan to coincidentally release when the real bond notes are injected into the economy.
The new notes are expected to be in circulation in a few weeks' time with the Reserve Bank of Zimbabwe (RBZ) rolling out massive awareness campaigns ahead of their usage.
The Minister of Finance and Economic Development, Patrick Chinamasa, said the ongoing nationwide public awareness campaigns were meant to empower the transacting public and warn them against conmen.
The initial deadline for the release of bond notes was end of October. However, the RBZ withheld their injection in order to extend campaigns and educate the public on the denominations and operations of the bond notes.
The new notes will come in denominations of $2 and $5 with an initial tranche of $75 million worth of notes set to be in circulation by end of next month. When the central bank is satisfied with the level of conversancy the public has with bond notes, they will be introduced.
This comes after the Reserve Bank of Zimbabwe (RBZ) announced in February stringent measures including the capping of cash withdrawals without one-day prior notice to US$10 000, restrictions on offshore investment and suspending free funds to tackle illicit money flows and capital flight remittances after nearly US$2 billion evaporated from the capital-starved economy through externalization last year.
The central bank this week said it was sensing a growing trend in third-party transactions through well-orchestrated schemes that ensure cash deposits do not make it into the banking system.
Meanwhile, unscrupulous characters have started printing fake bond notes which they plan to coincidentally release when the real bond notes are injected into the economy.
The new notes are expected to be in circulation in a few weeks' time with the Reserve Bank of Zimbabwe (RBZ) rolling out massive awareness campaigns ahead of their usage.
The Minister of Finance and Economic Development, Patrick Chinamasa, said the ongoing nationwide public awareness campaigns were meant to empower the transacting public and warn them against conmen.
The initial deadline for the release of bond notes was end of October. However, the RBZ withheld their injection in order to extend campaigns and educate the public on the denominations and operations of the bond notes.
The new notes will come in denominations of $2 and $5 with an initial tranche of $75 million worth of notes set to be in circulation by end of next month. When the central bank is satisfied with the level of conversancy the public has with bond notes, they will be introduced.
Source - Zim Ind and online
