Zimbabwean bond notes
Zimbabwean bond notes are a form of banknote in circulation in Zimbabwe. Released by the Reserve Bank of Zimbabwe, the notes were stated to not be a currency in itself but rather legal tender near money pegged equally against the U.S. dollar. In 2014, prior to the release of bond notes, a series of bond coins entered circulation.[1]
| Zimbabwean bond notes | |
|---|---|
A two-dollar bond note | |
| Country | Zimbabwe |
| Issuers | Reserve Bank of Zimbabwe (2014–present) |
| Denominations | $2, $5, $10, $20, $50, $100 |
History edit
In November 2016, backed by a US$200 million loan from the African Export-Import Bank, the Reserve Bank of Zimbabwe began issuing $2 bond notes.[2] Two months later, US$15 million worth of new five-dollar bond notes were also released.[3] Further plans for $10 and $20 bond notes were ruled out by the Reserve Bank's governor John Mangudya.[4]
The notes were not generally accepted by the Zimbabwean people,[5][6] so the government tried expanding the electronic money supply and issuing Treasury bills instead.[5][7]
The bond notes were still in circulation in 2018, although former Finance Minister Tendai Biti said that they should be demonetised, as they were being subject to arbitrage.[8] In the campaigning for the 2018 elections, the bond notes became a political issue, with the MDC Alliance calling for their replacement with 'real cash'.[8]
Despite the notes being notionally pegged to the US dollar, their value, like the former Zimbabwean dollar, is collapsing, with everyday transactions using a rate of $3 bond notes to 1 United States dollar in January 2019 and over $90 bond notes to US$1 as of November 2020.[9] As of August 2022, the conversion rate is $361.9 bond notes to US$1.
Issued notes edit
| Pick No. | Image | Value | Dimensions | Main colour | Description | Date of[10] | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Obverse | Reverse | Obverse | Reverse | Watermark | printing | issue | withdrawal | |||||
| 99 | $2 | 155 × 62 mm | Green | Domboremari with trees | Eternal Flame at the National Heroes Acre, and the Old Parliament House | Zimbabwe Bird and "RBZ" | 2016 | 28 November 2016 | 11 November 2019 | |||
| 100 | $5 | 155 × 66 mm | Purple | Domboremari with trees | Three giraffes and the Zimbabwe Aloe (Aloe excelsa) | Zimbabwe Bird and "RBZ" | 2016 | 3 February 2017 | 11 November 2019 | |||
| These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table. | ||||||||||||
Bond notes and the RTGS dollar edit
In February 2019, the RBZ Governor announced that the bond notes would be part of the "values" that make up the new currency to be added into the Zimbabwean market, the RTGS dollar along with the bond coins and electronic balances.[11]
See also edit
References edit
- ^ Staff Reporter. . www.new zimbabwe. Archived from the original on 20 March 2018. Retrieved 27 November 2016.
- ^ Crabtree, Justina (28 November 2016). "Zimbabwe's issuing new 'bond notes' to avoid a cash crunch". CNBC. Retrieved 1 May 2017.
- ^ Rahman Alfa Shaban, Abdur (3 February 2017). "Zimbabwe introduces fresh $5 bond notes to ease cash crunch". Africa News. from the original on 3 February 2017.
- ^ "RBZ rules out $10, $20 bond notes". Daily News. Harare, Zimbabwe. from the original on 5 March 2017.
- ^ a b Southall, Roger Jonathan (2017). "Bond notes, borrowing, and heading for bust: Zimbabwe's persistent crisis". Canadian Journal of African Studies. 51 (3): 389–405. doi:10.1080/00083968.2017.1411285. S2CID 149057942.
- ^ "The king of funny money: Zimbabwe's new "bond notes" are falling fast". The Economist. 18 February 2017. from the original on 18 February 2017.
- ^ Mhlanga, Fidelity (11 February 2018). "Zimbabwe: Mangudya Failed to Put Cap On RTGs Balances - Experts". The Standard. from the original on 11 February 2018.
- ^ a b . Daily News. Harare, Zimbabwe. 13 March 2018. Archived from the original on 13 March 2018. Retrieved 6 July 2018.
- ^ "Letter from Africa: Despair, anger and anxiety in Zimbabwe's fuel queues". BBC News. 15 January 2019.
- ^ Linzmayer, Owen (24 May 2019), "Zimbabwe", Banknote Book, Virginia Beach, pp. 25–27
{{citation}}: CS1 maint: location missing publisher (link) - ^ Staff Reporter (20 February 2019). "RBZ introduces "RTGS Dollars"". The Zimbabwe Mail. Retrieved 20 May 2019.
External links edit
- Media related to Money of Zimbabwe at Wikimedia Commons
| 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 multiple currency system with hard currencies & Zimbabwean bond coins (since 28 November 2016) | Succeeded by: Current |