Banks backtrack on coin repatriation

The coins were supposed to be sent back after retailers and other businesses claimed banks were unfairly pricing the coins.
Bankers Association of Zimbabwe president Mr John Mushayavanhu on Tuesday said banks have to adapt to the retailers’ pace of buying the coins.
“We are no longer repatriating the coins to South Africa as the cost of exporting the coins is too high. We have to deal with the retailers’ pace in buying the coins, which is, however, very slow,” Mr Mushayavanhu said in an interview.
He said BAZ could not tell when retailers and other businesses would take up the coins at a faster rate.
Mr Mushayavanhu said BAZ would want to see more coins in circulation, which would ease change problems consumers were facing. “Coins are there to facilitate change and if they (retailers) do not buy coins, they will keep prejudicing customers of a lot of money,” he said.
Retailers who are reluctant to buy the coins have said banks would make huge profits from the US$1 to R7,4 exchange rate being offered. However, some of the retailers shunning the coins are not mindful of the fact that the current rate is US$1 to R6,9 and the exchange rate between the US dollar and the Rand continues to fluctuate.
The shortage of coins has resulted in customers getting trinkets for change in shops or being forced to take vouchers, which are only redeemable at that particular shop.
Change shortages started after the introduction of the multi-currency system in 2009.
The Consumer Council of Zimbabwe has said this has contributed to the high cost of living in Zimbabwe as people spend more than they want to. Consumers in Bulawayo, Beitbridge and Masvingo are not much affected as they use the South African Rand and have adopted a 1:10 exchange rate.
In his 2011 budget statement, Finance Minister Mr Tendai Biti said Government was working on importing coins and other small denominations from the United States.