RBZ engages 'bond coins' distributor

Published: 07 June 2015

The Reserve Bank of Zimbabwe (RBZ) has engaged Easylink Money Transfer Agent (Easylink) to compliment banks in the distribution of the recently launched bond coins.

Easylink - a money transfer unit owned by RBZ's subsidiary, Homelink - will issue the special currency without charging commission or withdrawal fees.

John Mangudya, RBZ governor, said the move is aimed at easing coin shortages in some parts of the country.

"Currently bond coins are issued by the Reserve Bank through banks for their onward distribution to the public. This system has its own challenges which have led to some parts of the country not being able to get access to the coins," he said in his January 2015 Monetary Policy Statement.

In addition to distributing the bond coins, he said Easylink outlets shall, with immediate effect, accept to exchange rand coins for the bond ones at the prevailing exchange rate of the rand to the United States dollar.

"This policy measure is intended to ensure that the public get fair value for their rand coins unlike the current situation where consumers are being short changed," he said.

The RBZ introduced the bond coins on December 18, 2014 as an intervention to address change problems and address the pricing of goods.

However, the coins have been received with deep suspicion by a population that experienced one of the world's worst economic meltdowns in history, which stoked inflation out of control to officially reach 231 million percent in December 2008.

Mangudya said the central bank will embark on an awareness campaign to make the coins popular with ordinary citizens.

"The Reserve Bank shall also be launching a Consumer Rise and Shine awareness campaign for the promotion of bond coins in close collaboration with the Consumer Council of Zimbabwe," he said.

Meanwhile, the formal sector has pledged to accept the coins and make them readily available to customers.
- dailynews

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