Home » Industry » BAZ Welcomes Bond Coins

The introduction of bond coins will restore good pricing models and reduce problems associated with lack of change, which has been forcing consumers to buy unwanted goods, the Bankers’ Association of Zimbabwe has said.

The bond coins were issued by the central bank last Friday and will come into circulation on December 18.

The bond coins, which have been issued on a one-to-one equivalence to the US dollar coins in denominations of 1 cent, 5 cents, 10 cents and 25 cents, will be interchangeable into US dollars at any bank, shop, supermarket or other business in Zimbabwe and are backed by a US$50 million facility negotiated by the Reserve Bank of Zimbabwe.

“The lack of coins in the economy has contributed to the overpricing of commodities and forced consumers to overspend as a result of the lack of change,” said BAZ in a statement yesterday.

“BAZ believes that the new measures will assist in the restoration of good pricing models and alleviate the problems associated with lack of change, issuance of change vouchers and change in the form of unwanted goods.

‘The introduction of bond coins should provide convenience to the transacting public.”

BAZ said the current cash withdrawals limits will not be changed because of the introduction of the bond coins.

“The coins have been issued purely to alleviate the current shortage of small denomination in the economy, which has resulted in recorded inefficiencies and a huge cost to consumer welfare.

“The introduction of the bond coins does not in any shape or form represent or signal a return of the Zimbabwe dollar. In fact, it is being undertaken to buttress the multi-currency regime,” said the association.

Source : The Herald