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Reserve Bank of Zimbabwe’s demonetisation exercise started yesterday on a low note as witnessed by the low turnout of clients in various banking institutions across Harare.

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.

Banks such as CABS, CBZ and FBC witnessed few people surrendering the old notes in exchange for the US dollars using prescribed RBZ rates.

Other financial institutions turned people away as they had not commenced the exercise, signalling that they had not yet received funding and exchange rates from RBZ.

CABS general manager responsible for retail banking, Mr Ken Chitando, said that all modalities from the RBZ were in place and the institution was geared to commence the process.

Efforts to get a comment from CBZ’s marketing, corporate affairs and training group executive, Ms Laura Gwatiringa, were fruitless as she demanded written questions.

Sources from Standard Chartered bank said they had not yet received communication from RBZ to that effect and clients did not manage to exchange their notes.

A source from Barclays Bank said that their managers were in a meeting discussing how they would start implementing the programme.

At POSB, Ecobank and ZB Bank there was no progress as well.

However, most clients were turned away from institutions that started the programme as they had brought the wrong notes.

Most people told The Herald that they were not satisfied with the rates offered by the RBZ.

Source : The Herald