Zimbabwean bond coins
| Zimbabwean bond coins | |
|---|---|
| ISO 4217 code | USD |
| Country |  Zimbabwe |
| Issuers | Reserve Bank of Zimbabwe (2014–present) |
| Denominations | 1, 5, 10, 25, 50 U.S. Cents, and 1 U.S. Dollar. |
The Reserve Bank of Zimbabwe began to release Zimbabwean bond coins on 18 December 2014. The coins are supported by a US$50 million facility extended to the Reserve Bank of Zimbabwe by AFREXIM Bannk[1]. To date coins worth US$15 million have been struck out of the total fifty million dollars available. The coins are denominated at 1, 5, 10, and 25 cents and are pegged to the corresponding values in United States currency.[2] A 50 cent bond coin was finally released in March 2015.[3]
The coins are being 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 regime that arose in 2009, when Zimbabwe abandoned the Zimbabwean dollar in response to several cycles of hyperinflation. The economy of Zimbabwe 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 US dollar. However, this arrangement has meant a shortage of small change in coins.[4][5][2][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, has denied that the Zimbabwean dollar is being reintroduced.[citation needed]
The bond coins, struck at the South African Mint in Pretoria,[citation needed] are the first Zimbabwean coins since 2003.
A bimetallic 1 Dollar bond coin will be released on 28 November 2016 along with the Zimbabwean Bond Notes for 2 & 5 U.S. dollars
See also
References
- ^ newzimbabwe.
{{cite web}}:|access-date=requires|url=(help); Missing or empty|title=(help); Missing or empty|url=(help) - ^ a b "Zimbabweans suspicious of new 'bond coins'". Times Live. Johannesburg, South Africa: Times Media Group. 22 December 2014. Retrieved 12 January 2015.
- ^ Chawafambira, Kudzai (2014-12-06). "RBZ unveils bond coins". Daily News Live. Harare, Zimbabwe: Associated Newspapers of Zimbabwe (Pvt) Ltd. Retrieved 13 January 2015.
- ^ "Zimbabwe launches new coins to solve change shortage". The Telescope News. 2014-12-24. Retrieved 12 January 2015.
- ^ a b Sanchez, Dana (2015-01-09). "Zimbabweans Suspicious Of New Bond Coins In Circulation". AFK Insider. Retrieved 12 January 2015.
- ^ Hanke, Steve H; Alex KF Kwok (Spring–Summer 2009). "On the Measurement of Zimbabwe's Hyperinflation" (PDF). The Cato Journal.
- ^ "Zimbabweans sceptical of new bond coins". Mail & Guardian. Johannesburg, South Africa: M&G Media. 2014-12-22. Retrieved 12 January 2015.
| Preceded by: Zimbabwean dollar Reason: hyperinflation Ratio: 250 ZWL = 1 USD Note: 1st dollar (ZWD): 18 April 1980 to 21 August 2006 2nd dollar (ZWN or 1 000 ZWD): 1 August 2006 to 31 December 2008 3rd dollar (ZWR or 1010 ZWN): 1 August 2008 to 12 April 2009 4th dollar (ZWL or 1012 ZWR): 2 February 2009 to 12 April 2009 |
Currency of Zimbabwe 18 December 2014 – present Note: Part of a multi-currency regime with hard currencies. |
Succeeded by: Current |