Zimbabwean bond coins explained

Above:Zimbabwean bond coins
Headerstyle:background:#ccf;
Label2:Country
Data2: Zimbabwe
Label3:Issuers
Data3:Reserve Bank of Zimbabwe (2014–2024)
Label4:Denominations
Data4:1, 5, 10, 25, 50 Cents Bond Coin, 1 Dollar Bond Coin, 2 Dollar Bond Coin

The Reserve Bank of Zimbabwe began to release Zimbabwean bond coins on 18 December 2014. The coins were supported by a US$50 million facility extended to the Reserve Bank of Zimbabwe by Afreximbank (the African Export–Import Bank).[1] To date coins worth US$15 million have been struck out of the total $50 million available. The coins were first issued in denominations of 1, 5, 10, and 25 cents and are pegged to the corresponding values in U.S. dollars. A 50 cents bond coin was released in March 2015.[2]

The coins were issued to remedy a lack of small change resulting from the absence of a solid seigniorage contract with the U.S., South Africa or any of several other countries whose currencies, including the U.S. dollar and the euro, are being used in the multi-currency system that arose in 2009, when Zimbabwe abandoned the Zimbabwean dollar in response to several cycles of hyperinflation. The Zimbabwean economy being too frail and small to pay the interest which would come with a seigniorage contract, the country chose instead to implement a multi-currency environment based on the U.S. dollar. However, this arrangement has meant a shortage of small change in coins.[3] [4] [5] [6]

Public reaction to the bond coins has been extremely skeptical, with widespread fear that they are the government's first step to reintroducing an unreliable Zimbabwean dollar.[5] [7] John Mangudya, the Governor of the Reserve Bank of Zimbabwe, had denied that the Zimbabwean dollar was being reintroduced.

The bond coins, struck at the South African Mint in Pretoria,[8] were the first Zimbabwean coins since 2003.

A bimetallic one-dollar bond coin was released on 28 November 2016[9] along with two- and five-dollar Zimbabwean bond notes.[10] A bimetallic two-dollar bond coin was released in 2019, and circulates with its equivalent banknote in circulation.[11]

Coins in Circulation

DenominationYearObverseReverseWeightDiameterMaterial
1 Cent Bond Coin2014RBZ in various positions with coin date centeredEnclosed in circle with "1" surrounded by "ONE CENT BOND COIN"2.45 g17 mmCopper-plated steel[12]
5 Cents Bond Coin2014RBZ in various positions with coin date centeredEnclosed in circle with "5" surrounded by "FIVE CENTS BOND COIN"2.85 g18 mmBrass-plated steel
10 Cents Bond Coin2014RBZ in various positions with coin date centeredEnclosed in circle with "10" surrounded by "TEN CENTS BOND COIN"3.80 g20 mmBrass-plated steel
25 Cents Bond Coin2014RBZ in various positions with coin date centeredEnclosed in circle with "25" surrounded by "TWENTY-FIVE CENTS BOND COIN"4.80 g23 mmNickel-plated steel
50 Cents Bond Coin2014RBZ in various positions with coin date centeredEnclosed in circle with "50" surrounded by "FIFTY CENTS BOND COIN"6.00 g25 mmNickel-plated steel
1 Dollar Bond Coin2016RBZ in various positions with coin date centeredEnclosed in circle with "1$" surrounded by "ONE DOLLAR BOND COIN"9.06 g28 mmBrass ring with a nickel-plated steel center plug
2 Dollars Bond Coin2018RBZ in various positions with coin date centeredEnclosed in circle with "2$" surrounded by "TWO DOLLAR BOND COIN"11.11 g28 mmCupronickel ring with an Aluminum-bronze center plug

Bond coins and the RTGS dollar

In February 2019, the RBZ Governor, announced that the bond coins would be part of the "values" that make up the new currency to be added into the Zimbabwean market, the Real Time Gross Settlement (RTGS) dollar.[13]

See also

Notes and References

  1. Web site: 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: Chawafambira. Kudzai. RBZ unveils bond coins. Daily News Live. 13 January 2015. Harare, Zimbabwe. 2014-12-06. 2018-06-27. https://web.archive.org/web/20180627144933/https://www.dailynews.co.zw/articles/2014/12/06/rbz-unveils-bond-coins. dead.
  3. Web site: Zimbabweans suspicious of new 'bond coins'. Times Live. Times Media Group. 12 January 2015. Johannesburg, South Africa. 22 December 2014.
  4. Web site: Zimbabwe launches new coins to solve change shortage. The Telescope News. 12 January 2015. 2014-12-24. 2015-02-11. https://web.archive.org/web/20150211232339/http://www.thetelescopenews.com/business/5959-zimbabwe-launches-new-coins-to-solve-change-shortage.html. dead.
  5. Web site: Sanchez. Dana. Zimbabweans Suspicious Of New Bond Coins In Circulation. AFK Insider. 12 January 2015. 2015-01-09.
  6. Hanke . Steve H . Alex KF Kwok . On the Measurement of Zimbabwe's Hyperinflation . The Cato Journal . Spring–Summer 2009 . 2015-02-11 . 2009-08-20 . https://web.archive.org/web/20090820193841/http://www.cato.org/pubs/journal/cj29n2/cj29n2-8.pdf . dead .
  7. Web site: Zimbabweans sceptical of new bond coins. Mail & Guardian. M&G Media. 12 January 2015. Johannesburg, South Africa. 2014-12-22.
  8. Web site: RBZ introduces coins. The Herald. 14 January 2021. Harare, Zimbabwe. 2014-12-06.
  9. Web site: Bond notes finally out. www.herald.co.zw. en. 2019-10-11.
  10. News: Zimbabwe note launch stokes currency fears . BBC News . 28 November 2016 . en . 2019-10-11.
  11. https://en.numista.com/catalogue/pieces184676.html 2 Dollars Bond Coin
  12. Book: Michael, Thomas. 2017 Standard Catalog of World Coins, 2001-Date. Krause Publications. 2016. 978-1440246555. 1392.
  13. Web site: Monetary Policy Statement - Establishment of an Inter-Bank Foreign Exchange Market to Restore Competitiveness. Reserve Bank of Zimbabwe.