$2 coins issuance date set

Oliver Kazunga, Senior Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) will issue two-dollar coins on Monday next week and these will circulate alongside the two-dollar bond note, the Governor, Dr John Mangudya, said yesterday.

In a statement, Dr Mangudya said the issuance of the two-dollar coin was in line with the pronouncement made in the 2019 Mid-term Monetary Policy Statement and the need to increase the level of physical cash in circulation.

“The Reserve Bank of Zimbabwe wishes to advise the public that with effect from November 11, 2019, it shall issue a two-dollar coin, which will circulate alongside the two-dollar bond note,” he said.

Dr Mangudya said the two-dollar coin would have distinct features and characteristics. These include a bi-metal with the outer rim being copper-nickel plated and the inner core being aluminum-bronze plated, serrated rim profile with a groove and edge lettering.

In addition, the two-dollar coin will have an inscription of the words “Two Dollar Bond Coin” and the numeral and symbol “$2” on the observe side, inscription of the letters “RBZ” and the numeral “2018” on the reverse side.

Dr Mangudya said the public was also being advised that all bond coins and bond notes shall circulate alongside, and shall be interchangeable with the two and five-dollar bank notes issued in terms of Statutory Instrument 231 of 2019.

Last week, the RBZ announced that the new bank notes and coins would be introduced within two weeks as part of measures to address cash shortages and improve money supply. These would be in denominations of $5 and $2 notes as well as $2 coins. The Apex bank said it decided to maintain lower denominations to avoid triggering inflation.

Dr Mangudya said the bank notes and coins would be pegged at 1:1 with bond notes and supply would be increased over six months.

The move by the RBZ to inject new notes and coins into circulation has excited the market with economists saying this will restore normal transactions and weed out parallel market-induced price distortions. — @okazunga