Zimbabwean bond notes explained

Above:Zimbabwean bond notes
Headerstyle:background:#ccf;
Label2:Country
Data2: Zimbabwe
Label3:Issuers
Data3:Reserve Bank of Zimbabwe (2014–2024)
Label4:Denominations
Data4:$2 and $5

Zimbabwean bond notes were a form of banknote in circulation in Zimbabwe. Released by the Reserve Bank of Zimbabwe, the notes were stated to not be a currency in itself but rather legal tender near money pegged equally against the U.S. dollar. In 2014, prior to the release of bond notes, a series of bond coins entered circulation.[1]

History

In November 2016, backed by a loan from the African Export-Import Bank, the Reserve Bank of Zimbabwe began issuing $2 bond notes.[2] Two months later, worth of new five-dollar bond notes were also released.[3] Further plans for and bond notes were ruled out by the Reserve Bank's governor John Mangudya.[4] However, in 2020, $10 bond and $20 were introduced.[5] In 2022, the $50 and $100 bond notes were introduced.[6]

The notes were not generally accepted by the Zimbabwean people,[7] [8] so the government tried expanding the electronic money supply and issuing Treasury bills instead.[9]

The bond notes were still in circulation in 2018, although former Finance Minister Tendai Biti said that they should be demonetised, as they were being subject to arbitrage.[10] In the campaigning for the 2018 elections, the bond notes became a political issue, with the MDC Alliance calling for their replacement with 'real cash'.

Despite the notes being notionally pegged to the US dollar, their value, like the former Zimbabwean dollar, is collapsing, with everyday transactions using a rate of $3 bond notes to in January 2019 and over $90 bond notes to as of November 2020.[11] As of August 2022, the conversion rate is $361.9 bond notes to US$1.

Issued notes

Pick
No.! colspan="2"
ImageValueDimensionsMain colourDescriptionDate of
ObverseReverseObverseReverseWatermarkprintingissuewithdrawal
99$2155 × 62 mmGreenDomboremari with treesEternal Flame at the National Heroes' Acre, and the Old Parliament HouseZimbabwe Bird and "RBZ"201628 November 201611 November 2019
100$5155 × 66 mmPurpleDomboremari with treesThree giraffes and the Zimbabwe Aloe (Aloe excelsa)Zimbabwe Bird and "RBZ"20163 February 201711 November 2019

Bond notes and the RTGS dollar

In February 2019, the RBZ Governor announced that the bond notes would be part of the "values" that make up the new currency to be added into the Zimbabwean market, the RTGS dollar along with the bond coins and electronic balances.[12]

See also

External links

Zimbabwean ZiG

Notes and References

  1. Web site: Staff Reporter. RBZ says bond notes launch Monday. www.new zimbabwe. 27 November 2016. 20 March 2018. https://web.archive.org/web/20180320014608/http://www.newzimbabwe.com/news-33463-RBZ+says+bond+notes+launch+Monday/news.aspx. dead.
  2. Web site: Zimbabwe's issuing new 'bond notes' to avoid a cash crunch. CNBC. Crabtree. Justina. 28 November 2016. 1 May 2017.
  3. News: Rahman Alfa Shaban . Abdur . 3 February 2017 . Zimbabwe introduces fresh $5 bond notes to ease cash crunch . Africa News . https://web.archive.org/web/20170203114942/http://www.africanews.com/2017/02/03/zimbabwe-introduces-fresh-5-bond-notes-to-ease-cash-crunch/ . 3 February 2017 . live . dmy.
  4. News: RBZ rules out $10, $20 bond notes . Daily News . Harare, Zimbabwe . https://web.archive.org/web/20170305142959/https://www.dailynews.co.zw/articles/2017/03/05/rbz-rules-out-10-20-bond-notes . 5 March 2017 . live . dmy.
  5. Web site: Search Results for "100 bond note" – #Asakhe – CITE . 2024-02-24 . en-GB.
  6. Web site: Mataranyika . Memory . Zimbabwe introduces new ZWL100 note as monetary woes persist . 2024-02-24 . Business . en-US.
  7. Southall . Roger Jonathan . 2017 . Bond notes, borrowing, and heading for bust: Zimbabwe's persistent crisis . Canadian Journal of African Studies . 51 . 3 . 389–405 . 10.1080/00083968.2017.1411285. 149057942 .
  8. The king of funny money: Zimbabwe's new "bond notes" are falling fast . 18 February 2017 . . https://web.archive.org/web/20170218072325/https://www.economist.com/news/middle-east-and-africa/21716954-robert-mugabe-prints-banknotes-and-insists-they-are-worth-much-us-dollars . 18 February 2017 . live . dmy.
  9. News: Mhlanga . Fidelity . 11 February 2018 . Zimbabwe: Mangudya Failed to Put Cap On RTGs Balances - Experts . . https://web.archive.org/web/20180211060436/https://www.thestandard.co.zw/2018/02/11/mangudya-failed-put-cap-rtgs-balances-experts/ . 11 February 2018 . live . dmy.
  10. News: 13 March 2018 . MDC Alliance govt to scrap bond notes . Daily News . Harare, Zimbabwe . 6 July 2018 . 13 March 2018 . https://web.archive.org/web/20180313100155/https://dailynews.co.zw/articles/2018/03/13/mdc-alliance-govt-to-scrap-bond-notes . dead .
  11. News: Letter from Africa: Despair, anger and anxiety in Zimbabwe's fuel queues. BBC News. 15 January 2019.
  12. Web site: RBZ introduces "RTGS Dollars". Staff Reporter. 2019-02-20. The Zimbabwe Mail. en-US. 2019-05-20.