Zimpapers Logo

Dr John Mangudya

Prosper Ndlovu Business Editor—
THE business community has expressed readiness to embrace the 50 cents bond coins when they start circulating in the market next week. The Reserve Bank of Zimbabwe (RBZ) yesterday assured the transacting public that the 50 cents bond coin would be in use starting next Tuesday. The new coins come at a time when businesses in the country are cutting commodity prices and service charges to lay the foundation for meaningful economic recovery through price competitiveness.

Economic experts regard the move as a milestone step by the government towards buttressing the multiple currency system and enhancing confidence in the financial services sector.

RBZ Governor John Mangudya yesterday said the new 50 cents coins would boost domestic price competitiveness in the wake of a skyrocketing import bill running into billions of dollars.

The influx of cheap imports has been blamed for reducing Zimbabwe into an open market for other countries by suffocating the local manufacturing industry, which has partly led to company closures and loss of jobs.

“Following the successful launch, distribution and usage of the small denomination coins called bond coins, the Reserve Bank of Zimbabwe is pleased to announce the introduction of the fifty cents (50c) bond coins to further boost price competitiveness with effect from 31st March 2015 as announced in the Monetary Policy Statement,” said Mangudya.

Similar to the existing set of bond coins of 1c, 5c, 10c, and 25c, he added, the 50c bond coins are “indexed at par with the US cents and shall circulate freely side by side with all the currencies under the multiple currency system”.

Mangudya said the introduction of the 50c bond coins was aimed at completing the series of small denomination coins, which have helped to tame prices within the economy.

“Together with all the other bond coins, the 50 cents bond coins are available at any bank and at Easy Link Money Transfer Agency branches across the country,” he said.

The initial family of bond coins of 1c, 5c, 10c and 25 were introduced two months ago and have been received with delight by the transacting public as they enhance business convenience.

Zimbabwe National Chamber of Commerce (ZNCC) Bulawayo head, Crispen Mugova hailed the RBZ for fulfilling its pledge to bring 50c coins.

“This is a very good thing. Anyway, as businesses we’ve been waiting for it. As it is there is still a shortage of change and some shops are still giving tokens or rands,” said Mugova.

“You’ve realised that prices are coming down because of the availability of change hence this will result in an improvement in cashflows and that will be good for businesses.”

Finance Minister Patrick Chinamasa has said the coming of bond coins and availability of change will curb abuse of the United States dollar and arrest price distortions that have had an effect of making Zimbabwe’s cost of doing business expensive since 2009.