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Harare -The Reserve Bank of Zimbabwe (RBZ) is set to introduce much-awaited bond notes into the market on Monday. This will happen through normal banking channels in small denominations of $2 and $5 to fund export incentives of up to 5%, which will be paid to exporters of goods and services and diaspora remittances.
In a statement released over the weekend, the RBZ said the initial release of bond notes shall be in an amount of $10m in denominations of $2, and another $2m in $1 bond coins.
The bond notes, which are anchored to the Afrexim Bank’s $200m facility, are pegged 1:1 to the US dollar.
“The banking public is advised that no new accounts will be opened as the bond notes would be deposited into existing US dollar accounts. “
The Reserve Bank said it had engaged and agreed with the Retailers Association of Zimbabwe, fuel companies, representatives of the various business associations and the Consumer Council of Zimbabwe on the use and acceptability of bond notes as a medium of exchange in the country.
The country first talked about introducing bond notes six months ago, but has been delaying and postponing the introduction ever since.
READ: Zim to introduce local bank notes in October
The legality of bond notes was also challenged in courts of law, forcing President Robert Mugabe to resort to presidential powers as a way of legalising their introduction.
READ: Mugabe uses presidential powers to legalise Zim bond notes
Zimbabweans took to the streets to demonstrate against the introduction of the surrogate currency, amid fear that it was government's way of mopping out United States dollars from the public.
READ: Zim uprisings against useless bond notes
Withdrawal limits of bond notes have been set at a maximum of $50 per day and $150 per week, as the government is wary of the notes being abused.
“This measure is in tandem with the objective of the Bank to release bond notes into the market on a measured basis which is critical to mitigate against abuse of bond notes,” it said.
