adminA LEAST $4 million has been paid out to customers to date as part of the demonetisation of the Zimbabwean dollar which started in June and is expected to end on 30 September.
Demonetisation is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a change of national currency.
In his mid-term monetary policy statement presented on Wednesday, Reserve Bank of Zimbabwe governor Dr John Mangudya said the central bank was satisfied with how the demonetisation programme had progressed so far to promote consumer and business confidence by providing credibility to the multiple currency system and legally retiring the local unit.
He said Zimpost had assisted in serving cash customers in some of the areas without banks revealing that more than $300 000 had been paid out to walk-in customers.
“Frantic efforts are being made by the bank to deal with customers of closed banks and is liaising with the Deposit Protection Corporation in this regard,” said Dr Mangudya.
The demonetisation programme was done following the promulgation of Statutory Instrument 70 of 2015 and the budget for the programme was set at $20 million.
According to the RBZ, when the programme started in June, accounts with balances of zero to ZW$175 quadrillion would be paid a flat $5 whereas accounts with balances above ZW$175 quadrillion would be paid the equivalent value after applying the United Nations exchange rate of US$/ZW$35 quadrillion or ZW$35 000 (revalued).
The RBZ is also exchanging the Zimbabwe dollar cash for US$ equivalent for walk-in customers at an exchange rate of ZW$250 trillion to US$1 for 2008 notes and ZW$250 to US$1 for 2009 note series with cash payouts under the demonetisation process being exempted from bank charges and Government tax.
“Payouts will be disbursed on a ‘no questions’ asked basis. The bank has already discussed the payment modalities with the banks,” said Dr Mangudya.
Cash customers are getting their exact US$ equivalent of the converted amount, starting from US1 cent up to US$50 and where the US$ equivalent exceeds US$50, payment is made through their respective bank accounts while corporate customers’ US$ equivalent are being credited to their respective bank accounts.
On the notes issued in 2009 walk-in customers are being paid $2 for ZW$500, 40c for ZW$100, 20c for ZW$50, 8c for ZW$20, 4c for ZW10 and 2c for ZW$5 while on the notes issued in 2008, 40c for ZW$100 000 000 000 000 (ZW$100 trillion), 20c for ZW$50 trillion, 8c ZW$20 trillion and 4c for ZW$10 trillion is being paid.
Online Reporter