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Roberta Katunga Senior Business Reporter
BANKS have finished crediting all active accounts with relevant equivalents of the demonetised Zimbabwe dollar amounts, although it has emerged that most people have not bothered to collect the money, less than two weeks before the expiry of the demonetisation programme. The Reserve Bank of Zimbabwe initiated the demonetisation programme in June, setting aside $20 million for the exercise following the promulgation of Statutory Instrument 70 of 2015 which sought to compensate Zimbabwe dollars account holders.
The Central bank stated that accounts which had zero to $175 quadrillion were to be credited a flat exchange of US$5 whereas accounts with balances above US$175 quadrillion were to be paid the equivalent value after applying the United Nations exchange rate of US$1 for $35 quadrillion or US$35 000 (revalued).
Responding to questions from Sunday News Business on the uptake by account holders, Bankers Association of Zimbabwe chief executive officer Mr Sij Biyam said banking institutions have credited all active accounts with the money as mandated by the RBZ.
“All banks have credited active accounts with the relevant demonetisation amounts,” said Mr Biyam, although he could not disclose how much money was involved.
He said a final consolidated position for the entire banking sector including all outlying branches would only be available after the 30 September deadline.
However, RBZ Governor Dr John Mangudya in August when he presented his mid-term monetary policy statement announced that only $4 million of the $20 million had been paid in the three months to August.
Inquiries from banks have, however, shown that most people were still to claim the money.
This has resulted in individual banks starting to call customers to approach their branches to access the money.
On Friday, one of the leading banks- Barclays Zimbabwe announced that the remaining customers who held Zimbabwe dollar accounts as at 31 December 2008 should come forward and claim their funds.
The bank urged customers to check their accounts and confirm that they had been credited with the compensation.
“The demonetisation exercise, as announced by the RBZ, closes on 30 September 2015 and Barclays will not be able to make further accommodations after this date,” the bank warned its customers in a statement.
Demonetisation is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a change of national currency.
In his mid-term monetary policy statement, Dr Mangudya said the Central Bank was satisfied with how the demonetisation programme had progressed so far to promote consumer and business confidence by providing credibility to the multiple currency system and legally retiring the local unit.
The RBZ is also exchanging ZW$ cash for US$ equivalent for walk in customers at an exchange rate of $250 trillion to US$1 for 2008 notes and ZW$250 to US$1 for 2009 note series with cash payouts under the demonetisation process being exempted from bank charges and Government tax.
“Payouts will be disbursed on a ‘no questions’ asked basis. The bank has already discussed the payment modalities with the banks,” Dr Mangudya stated earlier at the beginning of the programme.
Cash customers are getting their exact US$ 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 into 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.
Zimbabwe discarded the use of its currency in 2009 adopting the use of multi-foreign currency system.
Online Reporter