Explainer: New Zimbabwe dollar notes and coins

RBZ governor Dr John Mangudya
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The Reserve Bank of Zimbabwe (RBZ) will introduce new bank notes and coins to be used together with the bond notes in the next two weeks.

Said RBZ governor Dr John Mangudya at the inaugural press conference for the central bank’s recently commissioned Monetary Policy Committee (MPC).

“Within the next two weeks, they (the public) will be having the cash.”

Does the new currency have a name?

Yes. Statutory Instrument 142 of 2019 designated the Zimbabwe dollar, defined as made up of electronic deposits (RTGS), bond notes and coins, as the sole legal tender for all domestic transactions. The new notes and coins will therefore fall under the ‘Zimbabwe dollar’ designation, reads SI 142.

What did Mthuli say?

“This is not a new currency, we already have a currency and it is the Zimbabwean dollar….. All that is really happening practically is a cash injection that is absolutely needed to reduce cash shortages . . . We already have a currency, there is no new currency. The new currency a Zimbabwean dollar was put in place on the 24th of June 2019 through the statutory instrument 142.”

Will the new currency have a separate value from bond notes, RTGS?

In view of the above, the answer is a definite no.

The new currency will have the same value as the old bond notes and coins currently in circulation, as well as the electronic money.

The bond coins were introduced in 2014, with the bond notes coming in 2016.

In what denominations will the new notes and coins be?

The central bank has said it will issue new $2 and $5 Zimbabwe dollar bank notes, as well as $2 bond coins.