Banks report positive bond notes uptake

LOCAL banks say they have seen a positive uptake of bond notes by the general public, barely a week after their release, the Bankers Association of Zimbabwe has said.The Reserve Bank of Zimbabwe released the bond notes on Monday, ending months of speculation surrounding the medium of exchange.

Since their release, local banks have been issuing out both the United States dollars and the bond notes, introduced as an export incentive and a measure to ease the cash shortages the country has been experiencing since earlier this year.

“The Bankers Association of Zimbabwe would like to update the market on the progress regarding the distribution of bond notes.

“All banks have witnessed an encouraging uptake of the bond notes since their introduction on Monday 28th November 2016,” said BAZ president Dr Charity Jinya in a statement.The central bank earlier indicated it would release the bond notes in smaller denominations of $2 and $5 to deal with perception issues regarding the export incentive.

However, additional denominations of $1 bond coins were also released on Monday.

The market has since embraced the bond notes with the banking public welcoming them as long as the medium of exchange will bring convenience.

“All we want is to be able to transact in all shops and as long as I am not going to queue overnight to get my money, then I have no issues with bond notes,” said Mrs Charity Chigangawa.

Dr Jinya also indicated local banks had committed towards ensuring smooth flow of transactions to meet market stakeholder expectations.

“Banks have reiterated that they are committed to fully complying with all regulatory requirements and will continue to work closely with the central bank in providing solutions towards the ease of doing business,” she said.

An initial $10 million worth of bond notes was released into the market. It is anticipated by end of December 2016, bond notes equivalent to $75 million will be circulating in the market.

The bond notes will be released into the economy in sympathy with export receipts through normal banking channels up to a maximum ceiling of the facility of $200 million. – Herald

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